President Donald Trump has issued a stark warning, threatening to fire Federal Reserve Governor Lisa Cook if she does not resign from her position. This dramatic statement comes amid ongoing allegations of mortgage fraud against Cook, which are currently under investigation by the Department of Justice (DOJ). The investigation was prompted by a criminal referral made by Bill Pulte, the head of the Federal Housing Finance Agency and a known ally of Trump, who has been vocal in his criticism of the Federal Reserve.
During a press conference on Friday, Trump expressed his disapproval of Cook's actions, stating, "I'll fire her if she doesn't resign. What she did was bad." This statement underscores the seriousness of the allegations, which involve claims that Cook falsified bank documents and property records to secure more favorable loan terms, potentially violating mortgage fraud laws.
Pulte, who initiated the referral to the DOJ, accused Cook of misrepresenting her primary residence status for two properties located in Ann Arbor, Michigan and Atlanta, Georgia. He alleged that she obtained mortgages on these homes just 14 days prior to his referral. In a social media post, Pulte shared images that he claimed showed Cook’s signature on documents indicating her primary residence status, although the images did not contain that specific information.
In response to these serious allegations, Cook defended herself in a statement provided to FOX Business. She stated, "I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve." Cook emphasized that she has no intention of being coerced into resigning due to tweets and expressed her commitment to addressing any legitimate questions regarding her financial history as a Federal Reserve member.
According to federal law governing the Federal Reserve system, the president can only remove a sitting governor for cause, which has traditionally been interpreted to mean malfeasance or misconduct rather than simple policy disagreements. If Trump proceeds with his threat to fire Cook, it would set a historical precedent as it would be the first time a president has sought to remove a sitting Federal Reserve governor, potentially igniting a legal battle.
The ongoing tensions between Trump and the Federal Reserve come as the president and his allies have consistently urged the Fed to lower interest rates to stimulate economic growth and alleviate the burden of the more than $37 trillion U.S. national debt. Despite his past threats, Trump has since softened his stance on firing Fed Chair Jerome Powell.
For continuous updates and expert insights on this developing story, stay tuned to FOX Business.
