Donald Trump wants Federal Reserve governor Lisa Cook out. On Wednesday, Trump jumped on Truth Social and wrote, “Cook must resign now!!!”
This came right after Bill Pulte, his ally and the head of the Federal Housing Finance Agency, dropped a bombshell. Pulte publicly accused Cook of committing mortgage fraud by claiming two houses as her primary residence, at the same time.
Pulte posted a letter on X saying Cook falsified bank records and property documents to lock in better mortgage deals. One of those homes was later listed for rent. He’s demanding that the Department of Justice get involved. That’s not a small request. It adds more heat to the Trump administration’s long war against the Federal Reserve and its staff.
Trump allies escalate mortgage fraud charges
Pulte, who’s been echoing Trump’s frustration with the Fed, made the situation louder on CNBC. He claimed, “You cannot do that in America.” He was referring to Cook’s alleged tactic of calling two separate homes her main residence to get favorable loan terms. Pulte says one home went up for rent shortly after the deal closed.
The accusation is simple: Cook claimed two primary residences, which is illegal under federal mortgage law. Pulte insisted there’s nothing political about it. “There’s no funny business here,” he said. “This is straightforward stuff, and if you commit mortgage fraud, especially in black and white, you will be prosecuted.”
Trump isn’t new to beef with the Federal Reserve. He’s constantly bashed Fed Chair Jay Powell, calling him a “moron” and a “numbskull” for refusing to slash interest rates during his time in office. He’s also furious over the Fed’s decision to spend $2.5 billion renovating its Washington headquarters.
White House pushes limits of Fed firing rules
The fight over Cook’s position is not political; it is economical and it’s legal. Federal law says central bank governors can only be removed for “cause”, which usually means serious misconduct. That’s the only way a sitting board member like Cook can be kicked out before their term ends.
Pulte argued on air that there’s “of course” cause to remove Cook, and then suggested Jay Powell could be the one to do it. “I’ll tell you this, Jay Powell, he has a chance to do the right thing by the law,” Pulte said. But that idea hits a wall. According to the Federal Reserve Act of 1913, only the president can remove a Fed board member.
That legal wall got taller earlier this year. The Supreme Court suggested that the president can’t just fire Federal Reserve governors because he doesn’t agree with their decisions. So even if Trump wants Cook out, even if Pulte is screaming fraud, the law might not be on their side. Not yet.
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