President Donald Trump urged Federal Reserve Gov. Lisa Cook to resign following allegations of mortgage fraud.
“Cook must resign, now!” Trump said in an Aug. 20 Truth Social post.
His statement came shortly after Bill Pulte, chairman of the Federal Housing Finance Agency (FHFA), posted on X a criminal referral letter, dated Aug. 15, to Attorney General Pam Bondi and Special Attorney Ed Martin.
Pulte alleged that Cook may have committed mortgage fraud by falsifying “bank documents and property records to acquire more favorable loan terms” and lower interest rates.
The letter alleges that she may have misrepresented the status of two properties—one in Ann Arbor, Michigan, and another in Atlanta—as her primary residence in 2021. Both homes were identified as her main residence within weeks of each other.
According to the letter, Cook also listed the Atlanta-based property for rent, despite stating in mortgage documents that it would be her primary home.
“While the property was listed for rent in 2022, a review of Ms. Cook’s federal government financial disclosures for calendar years 2022 and 2023 indicate that she has not disclosed any rental income tied to this address,” Pulte wrote.
Cook stated that she learned about Pulte’s accusations from the media and does not plan to resign.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in a statement to The Epoch Times. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
The Department of Justice declined to comment.
In a series of follow-up posts on X, Pulte said the president has cause to fire Cook.
“She needs to quit because what she did is grounds for firing,” Pulte said.
He also shared a published January 2023 Fed research paper that examined occupancy fraud in residential mortgage originations, determining that borrowers who misrepresented their occupancy status “performed worse” and that “their default decisions are also more strategic than other borrower types.”
“Will [Fed Chair] Jay Powell stand behind the Fed’s published research on mortgage fraud, or is he going to be complicit with Cook’s alleged fraud?” Pulte said.
Cook, appointed to the Fed Board in 2022 by President Joe Biden, is a permanent voting member on the interest rate-setting Federal Open Market Committee (FOMC). Her term extends until 2038.
Cutting Interest Rates
While Trump has repeatedly said his administration would not fire Powell ahead of his term expiring in May 2026, the president and other officials have begun the process of altering the central bank’s composition.
Following Adriana Kugler’s resignation, the White House appointed Stephen Miran, head of the Council of Economic Advisers, as her temporary replacement. Miran will go through the confirmation process, appearing before the Senate Banking Committee, followed by a full vote in the upper chamber.
The Federal Reserve in Washington on July 21, 2025. (Madalina Kilroy/The Epoch Times)
The president has urged the central bank to lower the influential benchmark federal funds rate. As with Powell and other colleagues, Cook has advocated a more cautious approach to adjusting monetary policy, warning that tariffs could pose “risks to both sides of our dual mandate” simultaneously.
Congress tasks the Federal Reserve with price stability and maximum employment.
“As I consider the appropriate path of monetary policy, I will carefully consider how to balance our dual mandate, and I will take into account the fact that price stability is essential for achieving long periods of strong labor market conditions,” Cook said in prepared remarks at a June 3 Council on Foreign Relations event.
Officials have long said that they can afford to be patient because economic activity is solid and labor market conditions remain intact.
The White House and two central bankers—Fed Gov. Christopher Waller and Vice Chair for Supervision Michelle Bowman—have said that the institution should restart its easing cycle, which has been paused since January.
Last month, Trump wrote in a post on Truth Social that “our rate should be three points lower than they are, saving us $1 trillion per year (as a country).”
“The Board should act, but they don’t have the Courage to do so!” he wrote.
Treasury Secretary Scott Bessent, appearing on Bloomberg Television, said the current policy rate is too restrictive and “should probably be 150 to 175 basis points lower.”
“They try to be more data-driven ... it’s just very old-fashioned thinking,” Bessent said in an Aug. 13 interview. “We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September. ... I’m hopeful about the September meeting.”
Investors overwhelmingly expect the Fed to follow through on a quarter-point rate cut next month, according to the Atlanta Fed’s Market Probability Tracker. The federal funds rate influences the borrowing costs of businesses, consumers, and governments.
The next two-day FOMC policy meeting will take place on Sept. 16 and 17.
The Epoch Times has reached out to the FHFA for comment.
Tom Ozimek contributed to this report.
