Trump presses Fed’s Cook to quit after mortgage fraud allegation

President Donald Trump called on Federal Reserve Governor Lisa Cook to resign after a staunch ally called for an investigation of the board member’s mortgages, intensifying his campaign on the central bank.

Federal Housing Finance Agency Director Bill Pulte urged Attorney General Pam Bondi to investigate Cook over a pair of mortgages, the latest in a series of moves by the Trump administration to increase legal scrutiny of Democratic figures and appointees. Cook was nominated to the Fed by former President Joe Biden.

Trump said Wednesday that Cook “must resign now,” citing Pulte’s allegations, while the FHFA head posted on social media that the accusations give Trump “cause to fire” her.

The dollar declined, yields pared losses and gold rose after Trump’s call for Cook’s ouster.

Pulte wrote a letter to Bondi and Justice Department official Ed Martin on Aug. 15 suggesting that Cook may have committed a criminal offense. The letter, which was first reported by Bloomberg News, alleges that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”

The Justice Department has received the letter, according to an official, who declined to elaborate further.

A resignation would create another opening for Trump to fill on the Fed board, potentially tipping the balance of Republican appointees to four of its seven members.

The president has explicitly said that he’ll only pick a successor to Fed Chair Jerome Powell who agrees that borrowing costs should come down, a demand that has already raised questions about whether a new chair can credibly preserve the bank’s independence.

Trump’s administration has also pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James. Both are longtime political foes of Trump.

The Cook referral expands that effort to the Fed, as Trump allies — including Pulte — press the US central bank to lower rates and Powell to resign before his term as chair expires in May.

No charges have been filed and it’s not clear whether Bondi will investigate. The Justice Department declined comment. The Federal Reserve declined comment. Cook did not respond to requests for comment late Tuesday.

BLOOMBERG