Sen. Elizabeth Warren (D-MA) defended recently fired Federal Reserve Governor Lisa Cook on CNBC’s Squawk on the Street, dismissing mortgage fraud allegations against her as nothing more than a political hit job orchestrated by allies of President Donald Trump.
Cook was removed from her position earlier this week after President Trump cited “sufficient cause” tied to accusations she improperly claimed two different primary residences on mortgage applications. The allegations were first raised publicly by Federal Housing Finance Agency head Bill Pulte, who presented documents suggesting Cook violated federal housing rules.
When pressed on whether a guilty verdict would justify Cook’s removal, Warren dodged, arguing that the claims are rooted in partisan attacks. “Where did they come from? They came from a Donald Trump lackey,” she said, accusing Pulte of digging through “Trump’s enemies list” to smear political opponents.
Warren insisted that firing a Federal Reserve official must be tied to misconduct directly related to the job. “What I care most about is that we follow the law here, and the law is pretty clear that firing for cause means job-related, like someone who has been inefficient or someone who’s been corrupt in doing the job,” she said.
She added that if Republicans want to broaden the legal grounds for dismissal, they should change the law through Congress. “We are a nation of laws, let’s just follow the law here,” Warren argued.
Her defense comes as Democrats rally around Cook, painting Trump’s move as part of a broader campaign to reshape the Fed. Republicans counter that Cook’s alleged fraud undermines public trust in the central bank, which is tasked with overseeing financial stability and setting interest rates.
