Federal Reserve Governor Lisa Cook declared Wednesday that she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.” Her response followed calls from Federal Housing Finance Agency Director Bill Pulte, who suggested Cook should resign or be fired for what he alleged was evidence of mortgage fraud.
Pressure From Trump and Pulte
Pulte, speaking on CNBC’s Money Movers, said Cook “needs to resign quickly,” adding that she “will have to resign, or… be fired.” Hours later, President Donald Trump echoed that view, posting on social media that the governor “must resign, now!!!”
Cook countered that the referral was based on a mortgage application from four years before she joined the Federal Reserve. She emphasized that she is collecting documentation to address “any legitimate questions” and provide the facts.
Pulte’s referral to Attorney General Pam Bondi is the latest in a series of mortgage-related allegations brought forward by the Trump administration against political opponents, including Sen. Adam Schiff and New York Attorney General Letitia James. The move also highlights Trump’s increasing pressure on the Fed, particularly in his push to lower interest rates — a campaign previously directed at Chairman Jerome Powell.
Cook, who was nominated to the Fed in 2022, recently voted with the majority of the Federal Open Market Committee to keep interest rates steady.
The Allegations in Detail
Pulte’s letter accuses Cook of claiming two different properties as her primary residence at the same time, potentially securing more favorable loan terms. The properties in question are in Ann Arbor, Michigan, and Atlanta, Georgia. According to Pulte, Cook may have received mortgages “under fraudulent circumstances.”
On social media, Pulte escalated his criticism, writing: “Lisa Cooked is cooked.” He also argued that Powell must act or risk being “complicit.”
Under the Federal Reserve Act of 1913, central bank governors can only be removed by the president and only for “cause,” generally understood as serious misconduct. Earlier this year, the Supreme Court also signaled that policy disagreements alone do not justify removal.
Despite these legal safeguards, Pulte insists there is clear cause, while suggesting Powell could take action. However, the law states removal authority rests solely with the president.
What The Author Thinks
The public spectacle around Lisa Cook highlights how the Federal Reserve is becoming a political battleground. While allegations of mortgage fraud should be thoroughly investigated, the way these claims are being aired — through press conferences and social media barbs — risks undermining confidence in the institution. The Fed’s independence has always been one of its defining strengths, but the constant tug-of-war between political leaders and central bankers may weaken its credibility at a time when stability is badly needed.
Featured image credit: Brookings Institution via Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.