US President Donald Trump has called for the resignation of Federal Reserve Governor Lisa Cook following allegations made by Bill Pulte, a housing finance regulator and Trump ally. Pulte asserts that Cook falsified documents and property records to obtain more favorable loan terms, potentially amounting to mortgage fraud. He posted a letter on X, addressed to Attorney General Pam Bondi, detailing his claims but did not provide evidence to support his allegations.
Trump has publicly expressed dissatisfaction with the Federal Reserve, particularly its chairman, Jerome Powell, and has advocated for lower interest rates. In addition to Cook, Trump has previously accused New York Attorney General Letitia James of mortgage fraud after she won a civil fraud case against him.
The allegations against Cook have not led to an announced investigation, but Trump used his social media platform, Truth Social, to urge Cook to resign. Cook, appointed by President Joe Biden in 2022, has not publicly responded to the allegations. The Federal Reserve’s monetary policy, which includes setting benchmark interest rates, is determined by its seven governors.
Both the Federal Reserve and the Department of Justice have declined to comment on the allegations or Trump’s remarks. In March, Pulte was appointed by Trump and has been a vocal critic of Powell, echoing Trump’s calls for interest rate reductions. Trump frequently describes Powell as “too late” in his actions concerning interest rates.
Trump is also exploring ways to influence the Fed beyond calling for Cook’s resignation, including potential nominees for the position of chairman when Powell’s term concludes next year. Recently, Fed Governor Adriana Kugler resigned, allowing Trump the opportunity to nominate economic adviser Stephen Miran, who must be confirmed by the Senate.
Powell is scheduled to speak at an economic summit in Jackson Hole, Wyoming, where he may provide insights into future Fed interest rate decisions. The next Federal Reserve meeting is anticipated to occur in mid-September, with many economists expecting a possible rate cut.
Source: https://www.bbc.com/news/articles/cx276gg2gwro?at_medium=RSS&at_campaign=rss