Fed’s Cook Rejects Resignation Demands Amid Mortgage Fraud Claims

Federal Reserve Governor Lisa Cook said Wednesday she has “no intention of being bullied to step down,” rejecting demands from President Donald Trump and allegations from Federal Housing Finance Agency Director Bill Pulte that she committed mortgage fraud. Cook, who sits on the Fed’s seven-member Board of Governors and holds a permanent vote on interest-rate decisions, signaled she will continue to serve. The dispute centers on an Aug. 15 letter in which Pulte asked the Justice Department to investigate whether Cook improperly declared two properties—in Ann Arbor, Michigan, and Atlanta, Georgia—as her primary residence to obtain favorable loan terms. Pulte labeled the issue “straightforward mortgage fraud” and said Cook should be removed “for cause.” The Justice Department and the Federal Reserve declined to comment, and no criminal charges have been filed. Governors of the U.S. central bank can be removed only by the president for serious misconduct, and a Supreme Court ruling earlier this year limited such authority in cases of policy disagreement. Cook, nominated by President Joe Biden in 2022 to a term that runs through 2038, said she is gathering documents to address “any legitimate questions” about her finances. The clash adds to mounting political pressure on the Fed as the Trump administration presses for lower interest rates.