President Donald Trump has escalated his campaign against the Federal Reserve by calling for the resignation of Governor Lisa Cook, after one of his allies alleged she committed mortgage fraud.
The push comes after Federal Housing Finance Agency director Bill Pulte, a close Trump supporter, sent a letter to the Justice Department on August 15 urging an investigation into two mortgages Cook secured in 2021. According to Pulte, Cook first obtained a loan in June of that year to purchase a property in Ann Arbor, Michigan, declaring it her primary residence. Two weeks later, she took out another mortgage in Georgia, also claiming it as her primary home, before later listing the property as a rental. Pulte alleged that Cook falsified documents to obtain favorable loan terms, calling the matter potential criminal fraud.
Trump amplified the accusations on his social media platform Wednesday, declaring, “Cook must resign, now!!!” The White House has made no comment on whether an official investigation will move forward, while the Federal Reserve has not responded publicly.
The controversy underscores the Trump administration’s broader pressure campaign against the Fed, which has been a frequent target of Trump’s criticism for not cutting interest rates fast enough. Trump has repeatedly attacked Fed Chair Jerome Powell, even suggesting he may face a lawsuit, and continues to push for faster reductions in borrowing costs despite recent pauses as policymakers assess the impact of new tariffs.
The timing is particularly significant as Fed officials gather in Jackson Hole, Wyoming, for their annual economic symposium, where Powell is expected to signal possible rate cuts later this year amid signs of labor market weakness. Markets are already pricing in a high likelihood of a cut at the September meeting.
Meanwhile, Trump has nominated Stephen Miran, head of the Council of Economic Advisers, to fill the Fed board vacancy left by the departure of Governor Adriana Kugler. Analysts say Cook has little incentive to resign before the next policy meeting, noting that any legal probe would continue regardless. If she were to step down, only two Democratic-appointed governors would remain on the board, potentially shifting the balance of influence at the central bank.