Continuing to pressure the Federal Reserve! Trump calls for Federal Reserve Governor Lisa Cook to resign

Biden-nominated Federal Reserve Governor Lisa Cook has been reported for alleged mortgage fraud, with Trump calling for her immediate resignation.

On Wednesday, August 20, Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), posted the complaint on social media platform X, publicly stating: “The following is a criminal complaint against current Federal Reserve Governor Lisa Cook.”

The letter was sent by Bill Pulte on August 15 to U.S. Attorney General Pam Bondi and Justice Department official Ed Martin, urging a criminal investigation into Federal Reserve Governor Lisa Cook. The letter alleges that Cook engaged in misconduct during the application process for two mortgage loans, which may constitute mortgage fraud. According to a copy of the letter, Pulte claims that Cook “may have forged bank documents and property records to obtain more favorable loan terms,” and points out that such actions may violate relevant criminal laws.

Meanwhile, President Trump quickly responded, citing the letter as a basis and strongly urging: “Cook must resign immediately!!!” Pulte also claimed on social media that these allegations provide Trump with “just cause to fire Cook.”

However, as of now, Cook has not faced any formal charges. It remains unclear whether Attorney General Pam Bondi will initiate an investigation.

As a result of this incident, the U.S. dollar index and Treasury yields fell sharply.

Two Loans Raise Questions, Whether False Statements Become the Focus

The complaint details two loan transactions in which Cook is alleged to have violated regulations. Cook purchased a property in Ann Arbor, Michigan, and signed a mortgage agreement promising to use the property as her primary residence for at least one year. Just two weeks later, Cook purchased another property in Georgia, also declaring in the loan documents that the property was her “primary residence.”

Pulte pointed out that Cook declaring two properties as “primary residences” in such a short time may constitute false statements, aimed at obtaining lower interest rates or other favorable mortgage conditions.

Additionally, the complaint mentions that Cook later listed the Georgia property for rent. Pulte questions whether Cook, if the purpose of the purchase was for personal residence but was actually used for rental, intentionally concealed the actual use to obtain loan benefits she should not have received The letter also included a copy of the loan documents signed by Cook, as well as a screenshot of the rental advertisement for the Georgia property from 2022 (approximately one year after the purchase).

Lisa Cook was nominated by President Biden and officially took office in 2022, becoming the first African American woman to serve on the Federal Reserve Board. Later, Biden nominated her for a full term as a Federal Reserve Governor, which will last until 2038.

Trump's Camp May Be Paving the Way to Pressure the Federal Reserve to Cut Interest Rates

The allegations against Cook are widely seen as part of a campaign by Trump's allies to pressure the Federal Reserve. Currently, Trump and his close supporters are actively pushing for interest rate cuts by the Federal Reserve and hope that current Chairman Jerome Powell will resign before his term ends in May next year.

If Cook resigns, it would leave a vacancy on the Federal Reserve Board, allowing Trump to further install a candidate who supports interest rate cuts. Trump has previously made it clear that he will only appoint individuals who "support interest rate cuts" as the next chair of the Federal Reserve.

This is not the first time Trump's camp has used legal means to pressure Democratic figures. Previously, the Trump administration had raised similar questions against California Senator Adam Schiff and New York Attorney General Letitia James, both of whom are long-time political opponents of Trump, on the grounds of alleged "mortgage fraud."

Risk Warning and Disclaimer

The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk