{"id":162129,"date":"2025-08-20T21:48:14","date_gmt":"2025-08-20T21:48:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/162129\/"},"modified":"2025-08-20T21:48:14","modified_gmt":"2025-08-20T21:48:14","slug":"trump-calls-on-fed-governor-cook-to-resign","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/162129\/","title":{"rendered":"Trump calls on Fed governor Cook to resign"},"content":{"rendered":"

WASHINGTON (AP) \u2014 President Donald Trump on Wednesday called on Federal Reserve governor Lisa Cook to resign after a member of his administration accused Cook<\/a> of committing mortgage fraud, the latest example of the Trump administration\u2019s efforts to gain control over the central bank.<\/p>\n

Bill Pulte, director of the agency that oversees mortgage giants Fannie Mae and Freddie Mac, urged the Justice Department to investigate Cook, who was appointed to the Fed\u2019s governing board by former president Joe Biden in 2022. She was reappointed the following year to a term that lasts until 2038, the longest remaining term among the seven governors. <\/p>\n

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Pulte, in a letter to Attorney General Pam Bondi, alleged that Cook claimed two homes as her principal residences in 2021 to fraudulently obtain better mortgage lending terms. On June 18 of that year she purchased a home in Ann Arbor, Michigan, and then two weeks later bought a condo in Atlanta, the letter said. Before joining the Fed, Cook taught at Michigan State University. <\/p>\n

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\"Federal<\/p>\n

Federal Reserve Board of Governors member Lisa Cook, right, talks with Federal Reserve Chairman Jerome Powell before an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo\/Mark Schiefelbein, File)<\/p>\n

Federal Reserve Board of Governors member Lisa Cook, right, talks with Federal Reserve Chairman Jerome Powell before an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo\/Mark Schiefelbein, File)<\/p>\n

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Pulte also charged that Cook has listed her condo in Atlanta for rent. Mortgages for homes used as principal residences typically carry lower interest rates than properties that are purchased to rent, the letter said. <\/p>\n

The Federal Reserve declined to comment on the accusation. A Justice Department spokesperson also declined to comment. <\/p>\n

The allegation represents another front in the Trump administration\u2019s attack on the Fed, which has yet to cut its key interest rate<\/a> as Trump has demanded. If Cook were to step down, then the White House could nominate a replacement. And Trump has said he would only appoint people who would support lower rates.<\/p>\n

Just last month, Trump blasted Powell<\/a> for the ballooning cost of the renovation of two of the Fed\u2019s headquarters buildings, even suggesting that the run-up in costs could constitute a firing offense. He backed off his threats to fire Powell after receiving a tour<\/a> of the project.<\/p>\n

Pulte also suggested that Cook\u2019s alleged actions could constitute a fireable offense. Fed officials are protected by law from being removed by a president, except \u201cfor cause,\u201d which is generally seen as some kind of malfeasance or dereliction of duty. <\/p>\n

Either way, if Trump seeks to fire Cook, it could lead to a court battle over a president\u2019s power to remove Fed governors. <\/p>\n

Senate Democrats, including New York Sen. Chuck Schumer, expressed support for Cook and slammed Trump\u2019s actions. <\/p>\n

\u201cTrump is a liar. Lisa Cook\u2014stand tough and don\u2019t let Trump intimidate you,\u201d Schumer wrote in a post on social media platform X.<\/p>\n

Massachusetts Sen. Elizabeth Warren said in a statement that Trump \u201chas been scrambling for a pretext to intimidate or fire Chair Powell and members of the Federal Reserve Board while blaming anyone but himself for how his failed economic policies are hurting Americans.\u201d <\/p>\n

\u201cThe President and his administration should not weaponize the Federal government to illegally fire independent Fed Board members,\u201d Warren added.<\/p>\n

Trump will be able to replace Chair Jerome Powell in May 2026, when Powell\u2019s term expires. Yet 12 members of the Fed\u2019s interest-rate setting committee have a vote on whether to raise or lower interest rates, so even replacing the Chair doesn\u2019t guarantee that Fed policy will shift the way Trump wants. <\/p>\n

But the more members of the Fed\u2019s governing board that Trump can appoint, the more control he will be able to assert over the Fed, which has long been considered independent from day-to-day politics<\/a>. <\/p>\n

All seven members of the Fed\u2019s governing board are able to vote on rate decisions. The other five voters include the president of the Fed\u2019s New York branch and a rotating group of four of the presidents of the Fed\u2019s other 11 regional branches. <\/p>\n

Trump appointed two members of the Fed\u2019s board in his first term, Christopher Waller and Michelle Bowman. Both dissented July 30<\/a> from the central bank\u2019s decision to keep its rate unchanged, in favor of a rate cut. <\/p>\n

Another Fed governor, Adriana Kugler, stepped down unexpectedly Aug. 1<\/a>, and Trump has nominated one of his economic advisers, Stephen Miran, to fill out the remainder of her term until January. <\/p>\n

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\"Federal<\/p>\n

Federal Reserve Chairman Jerome Powell, and Board of Governors member Lisa Cook, right, listen during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo\/Mark Schiefelbein, File)<\/p>\n

Federal Reserve Chairman Jerome Powell, and Board of Governors member Lisa Cook, right, listen during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo\/Mark Schiefelbein, File)<\/p>\n

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If Trump is able to replace Cook, the first Black woman to serve on the Fed\u2019s board, as well as Kugler, that would give him a clear majority on the board of governors. If Powell leaves the board when his term as chair ends next May, then Trump will be able to fill a fifth spot. However, Powell could stay on the board until early 2028 after finishing his term as chair. <\/p>\n

The presidents of the regional Federal Reserve banks are selected by the boards of directors of those banks, but are subject to the approval of the Fed\u2019s board of governors. The terms of all 12 of the regional Fed presidents end next February. <\/p>\n

Trump has for months demanded that the Federal Reserve reduce the short-term interest rate it controls, which currently stands at about 4.3%. He has also repeatedly insulted Powell, who has said that the Fed would like to see more evidence of how the economy evolves in response to Trump\u2019s sweeping tariffs before making any moves. Powell has also said the duties threaten to raise inflation and slow growth. <\/p>\n

Trump says that a lower rate would reduce the government\u2019s borrowing costs on $37 trillion in debt and boost the housing market by reducing mortgage rates. Yet mortgage borrowing costs and other interest rates, including many of the ones the government pays, do not always follow<\/a> the Fed\u2019s rate decisions. <\/p>\n

The Trump administration has made similar claims of mortgage fraud against Democrats that Trump has attacked, including California Sen. Adam Schiff and New York Attorney General Letitia James<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 President Donald Trump on Wednesday called on Federal Reserve governor Lisa Cook to resign after…\n","protected":false},"author":3,"featured_media":162130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[38853,75620,3881,93837,64,8120,84,69,12042,324,455,820,57,142,82,362,24980,50417,20863,32555,405,11335,80,17600,94,61,67,370,132,68,24724],"class_list":{"0":"post-162129","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-adam-schiff","9":"tag-adriana-kugler","10":"tag-ap-top-news","11":"tag-bill-pulte","12":"tag-business","13":"tag-charles-schumer","14":"tag-district-of-columbia","15":"tag-donald-trump","16":"tag-economic-policy","17":"tag-elizabeth-warren","18":"tag-federal-reserve-system","19":"tag-fraud","20":"tag-general-news","21":"tag-jerome-powell","22":"tag-joe-biden","23":"tag-legal-proceedings","24":"tag-letitia-james","25":"tag-lisa-cook","26":"tag-michelle-bowman","27":"tag-mortgages","28":"tag-new-york","29":"tag-pam-bondi","30":"tag-politics","31":"tag-stephen-miran","32":"tag-u-s-department-of-justice","33":"tag-u-s-news","34":"tag-united-states","35":"tag-united-states-government","36":"tag-unitedstates","37":"tag-us","38":"tag-x-corp"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115063298871894442","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/162129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=162129"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/162129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/162130"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=162129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=162129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=162129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}