New measures pressure the Federal Reserve to cut interest rates! Trump demands the resignation of Director Cook over mortgage loan investigation

According to the Zhitong Finance APP, President Trump has demanded the resignation of Federal Reserve Governor Lisa Cook, following a call from a staunch Trump supporter to investigate the mortgage situation of this board member, further intensifying the White House's pressure on the Federal Reserve. Bill Pulte, Director of the Federal Housing Finance Agency, urged Attorney General Pam Bondi to investigate Cook due to two mortgage loans. This is the latest action in a series of measures by the Trump administration to strengthen legal scrutiny of Democratic figures and appointees.

On Wednesday, Trump stated that Cook "must resign immediately" based on Pulte's allegations. The Federal Housing Finance Agency director claimed on social media that these allegations provided Trump with grounds to fire her.

On August 15, Pulte wrote a letter to Bondi and Justice Department official Ed Martin, suggesting that Cook may have committed a criminal offense, stating that Cook "forged bank documents and property records to obtain more favorable loan terms, potentially violating criminal regulations regarding mortgage fraud."

The Trump administration has previously made loan fraud allegations against several prominent Democrats; these include California Senator Adam Schiff and New York Attorney General Letitia James. Both have long been political adversaries of Trump.

The potential allegations against Cook mean that Trump is expanding this scrutiny to the Federal Reserve. Trump's allies (including Pulte) are urging the Federal Reserve to lower interest rates and are calling for Fed Chairman Powell to resign before his term ends in May.

No lawsuits have been filed regarding the incident, and it is unclear whether Bondi will conduct an investigation. The Justice Department declined to comment. The Federal Reserve also refused to comment. Cook did not respond to requests for comment later on Tuesday.

If Cook resigns, it will create another vacancy for Trump on the Federal Reserve Board. At that time, Trump will launch a pressure campaign to lower interest rates. The U.S. president has made it clear that he will only select a new chairman who agrees that interest rates should be lowered.

Pulte stated that Cook obtained a mortgage on a property in Ann Arbor, Michigan, signing a mortgage agreement that required her to use the property as her primary residence for at least one year. Two weeks later, according to the letter, she obtained a mortgage on a property in Georgia, claiming that this property would also become her primary residence.

Pulte also requested Bondi to investigate whether Cook exaggerated her situation regarding renting out the Georgia property afterward. The letter included copies of mortgage documents under Cook's name, as well as leasing information from 2022, about a year after she purchased the Georgia property.

In recent months, Trump has exerted immense pressure on Powell and the Federal Reserve to lower interest rates. He has posted on social media accusing Powell of "acting too late," stating that the Federal Reserve should have started cutting rates months ago. At the same time, he has harshly criticized Powell and the Federal Reserve for their actions regarding the headquarters renovation project and has historically and rarely made an official "visit" to the Federal Reserve in his capacity as president The referral document shows that Cook purchased a property in Ann Arbor, Michigan in 2021 and took out a $203,000 mortgage for 15 years. The document includes a stipulation that she "must occupy, establish, and use the property as the borrower's primary residence within 60 days and maintain it for at least one year," unless the lender—Michigan University Credit Union—agrees in writing. The document is dated June 18, 2021, but it is unclear whether the lender agreed to or was aware of her subsequent home purchase.

Subsequently, on July 2, 2021, Cook took out a separate 30-year mortgage for $540,000 to purchase a property in Georgia. It is reported that her mortgage there also included an occupancy clause requiring the borrower to use it as their primary residence within 60 days and to live there for at least one year.

Purtell claimed in a letter to Bondi that Cook "appears to have obtained mortgages that do not meet certain loan requirements and may have obtained favorable loan terms through fraudulent means in some cases."

Purtell pointed out that there are four criminal statutes available for Bondi to investigate to determine if there are possible charges.

Purtell also sent Bondi what appears to be rental information regarding the same Georgia property, which states, "This indicates that the property was originally intended for investment/rental purposes and not for use as a primary residence."

Cook was nominated to the Federal Reserve by President Biden and took office in 2022, becoming the first Black woman to serve on the Federal Reserve Board. Biden later nominated her for a second term, which will end in 2038.

Former Federal Reserve Governor Adriana Kugler—another Biden nominee—suddenly resigned early, providing Trump with the opportunity to nominate someone to the Federal Reserve Board sooner and steer its monetary policy in a direction more aligned with his personal preferences. He has appointed one of his economic aides, Stephen Miran, to temporarily fill this vacancy