Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
President Donald Trump on Wednesday called for the resignation of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud raised by his ally, Federal Housing Finance Agency Director Bill Pulte. Cook, however, has firmly rejected the demands, stating she will not be “bullied” into stepping down from her position at the central bank.
Allegations and Demands
The demand for Cook’s resignation stems from a letter dated August 15, in which FHFA Director Bill Pulte urged the Justice Department to investigate two mortgages taken out by Cook in recent years. Pulte, a vocal supporter of Trump, referenced these allegations on his social media platform, writing, “Cook must resign, now!!!”
Cook’s Rebuttal
In response to the calls for her departure, Cook issued a statement acknowledging the media reports of Pulte’s criminal referral. She clarified that the alleged mortgage application in question was from four years ago, prior to her joining the Federal Reserve. Cook stated, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.” She added that she intends to take any legitimate questions about her financial history seriously and is gathering accurate information to provide the facts.
Pulte’s Role and Past Criticisms
Bill Pulte is known as a staunch ally of Trump and has frequently voiced criticism of the Federal Reserve, particularly its leader, Chair Jerome Powell, for not lowering interest rates. He has also called for increased scrutiny of the central bank’s costly refurbishment of its Washington, D.C., headquarters. Speaking to CNBC on Wednesday, Pulte reiterated his stance, saying, “She needs to explain herself, but it’s all there in black and white. I think she needs to resign quickly.”
Broader Context of Pressure
This latest incident involving Governor Cook is viewed as an extension of the Trump administration’s ongoing pressure campaign against the Federal Reserve. The campaign has specifically targeted central bankers who are not perceived as being aligned with the former president’s policy preferences.
The situation highlights the continued political scrutiny faced by the Federal Reserve and its officials, particularly from figures aligned with former President Trump, as a key policymaker resists calls for her resignation amid allegations.
