President Donald Trump on Friday called for Federal Reserve Governor Lisa Cook to resign or face termination, following allegations that she committed mortgage fraud while serving on the board of the central bank. “What she did was bad,” Trump said. “So I’ll fire her if she doesn’t resign.”
The allegations stem from documents Cook reportedly submitted to the U.S. government in 2023. According to Federal Housing Finance Agency Chair Bill Pulte, Cook declared a property in Atlanta as her “personal residence” in February 2023 while simultaneously having listed it for rent months earlier, in September 2022. If proven true, the misrepresentation could amount to mortgage fraud, as such filings can affect loan terms under federal banking regulations.
U.S. Pardon Attorney Ed Martin sent a letter to Fed Chair Jerome Powell urging Cook’s resignation, citing potential violations of criminal statutes. “She has falsified bank documents and property records to acquire more favorable loan terms,” Martin wrote.
Despite mounting calls for her removal, Cook issued a defiant response. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she stated, while claiming she is reviewing her financial records and intends to provide accurate information.
Cook’s tenure at the Fed has been controversial from the start. During her confirmation process, past statements surfaced where she linked economic shortfalls and crises to systemic racism. She has previously claimed that racism shrinks the U.S. economy by trillions of dollars and has accused the financial industry of lacking diversity, even blaming that lack for the 2008 financial collapse.
Cook has also endorsed policy positions that prioritize race-specific employment metrics over general economic indicators. In one instance, she agreed with the view that Black unemployment is a better gauge of overall economic health than more traditional measures. In other public statements, Cook has blamed systemic racism for issues ranging from healthcare disparities to the COVID-19 response.
Her alignment with far-left ideology and inflammatory claims about race and economics have raised concerns among conservatives about her judgment and impartiality as a central bank official.
President Trump’s statement adds pressure on the Federal Reserve to address the matter swiftly. Cook’s refusal to resign, despite growing scrutiny and a potential criminal referral, may soon force Chairman Powell and the broader Fed board to take action.
