Federal Reserve Governor Lisa Cook remained defiant in the face of President Donald Trump’s calls for her to step down from the central bank on Wednesday.
“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.
Trump had called for her resignation over allegations of mortgage fraud.
Newsweek has reached out to the Justice Department for comment via online submission.
Why it Matters
The president and his administration have ratcheted up the pressure on the Federal Reserve and its leadership to slash interest rates in recent months.
Trump has repeatedly attacked Fed chairman Jerome Powell, dubbing him “too late Powell” and a “numbskull,” and calling on him to resign. There has even been speculation that the president may try to fire Powell before his term ends in May 2026, although Trump has said it’s “unlikely.”
Experts have warned that an attempt to fire Powell or other Fed board members, or force them to resign, could erode perceptions of the central bank’s independence, affecting markets, monetary credibility and future nominations to the Board of Governors.
What To Know
Trump’s demands for Cook’s resignation came after Federal Housing Finance Authority director William Pulte sent a “criminal referral” for the Federal Reserve governor to Attorney General Pam Bondi.
Pulte claimed, in his letter to Bondi, that Cook had designated multiple different homes, including properties in Ann Arbor, Michigan, and Atlanta, Georgia, as primary residences on mortgage applications in 2021.
Cook, a Biden appointee, began serving on the Fed board in 2022 and was reappointed to a 14-year term in 2023.
In a statement on Wednesday, she said she is taking the accusations seriously and is currently gathering information to respond to them.
Pulte’s letter and Trump’s call for Cook’s resignation are the latest attempt by the Trump administration to push the central bank to lower interest rates.
The president is not allowed to remove the central bank’s chair or governor because he disagrees with their policy approaches. But they could be forced to stand down if a criminal investigation found evidence of wrongdoing. Trump could then gain tighter control over the Fed by nominating their replacements.
Cook is not the only prominent figure whose mortgage has come under scrutiny from Trump’s Department of Justice. Democrat Sen. Adam Schiff of California and New York Attorney General Letitia James are also being investigated for allegations of mortgage fraud.
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Manuel Balce Ceneta/AP
What People Are Saying
Lisa Cook, Federal Reserve governor, said in a statement on Wednesday, “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.”
Trump wrote on Truth Social, “Cook must resign, now!!!”
Pulte wrote in a letter to Bondi that Cook had “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud.”
What Happens Next
Neither Bondi nor the Justice Department has announced if they plan to open a criminal investigation into Cook.
