Lisa Cook plans to sue President Donald Trump after he attempted to remove her from the Federal Reserve, citing mortgage-fraud allegations. The attempt renewed concerns about Federal Reserve independence and increased market volatility. Trump announced the removal in a letter that referenced a criminal referral from FHFA Director Bill Pulte to Attorney General Pam Bondi concerning Cook's 2021 purchase of houses in Michigan and Georgia. No charges have been filed by the Department of Justice. Cook is accused of occupancy fraud for allegedly misrepresenting a secondary home as her primary residence to obtain favorable loan terms. Cook rejected the allegations and refused to resign, stating no legal cause exists and pledging to continue her duties.
Federal Reserve Governor Lisa Cook plans to sue President Donald Trump after he attempted to fire her on Monday, citing allegations of mortgage fraud. The case has renewed concerns over the Fed's independence and added fresh volatility to financial markets. President Trump has no authority to remove Federal Reserve Governor Lisa Cook. His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.
Trump formally announced his decision to remove Cook in a letter on Monday after demanding her resignation last week. He cited a criminal referral from Federal Housing Finance Agency (FHFA) Director Bill Pulte to Attorney General Pam Bondi regarding Cook's 2021 purchase of two homes one in Michigan and another in Georgia. No charges have been filed by the Department of Justice. Cook is accused of occupancy fraud, which involved misrepresenting a secondary home as her primary residence to obtain more favorable loan terms.
The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve, Trump wrote in the letter. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity. He added it was inconceivable that Cook was unaware of her first mortgage commitment when signing for the second,
calling the alleged conduct gross negligence in financial transactions that undermines her competence and trustworthiness as a regulator. Cook, a Biden-era appointee and the first Black woman to serve on the seven-member Fed Board of Governors, rejected the allegations Monday night. No cause exists under the law, she said in a statement. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.
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