What to know about Lisa Cook, the Fed governor the Trump admin wants to oust
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Federal housing finance regulator Bill Pulte accused Federal Reserve governor Lisa Cook of mortgage fraud on Wednesday and referred her for criminal prosecution. Photo: Saul Loeb / AFP via Getty Images
The Trump administration has a new target in its bid to take control of the Federal Reserve and crimp its independence.
The big picture: Top housing regulator Bill Pulte is accusing Fed governor Lisa Cook of mortgage fraud. President Trump is considering firing her for cause, per The Wall Street Journal, and called for her resignation on Truth Social.
- Trump is attempting to clean house at the Fed with his attacks on Cook and Fed chair Jerome Powell. Ousting Cook would free up the seat for someone more amenable to lowering interest rates, which Trump has fought Powell over.
Here's what to know about Cook:
Cook's background
Catch up quick: Former president Joe Biden appointed Cook to the Fed Board of Governors in 2022.
- She is the first Black woman to serve as a Fed governor.
Cook has a Ph.D. in economics from the University of California, Berkeley, and was previously an economist at Michigan State University, researching racial disparities in the U.S. labor markets.
- As an academic, she has mentored other economists through the American Economic Association Summer Program.
During her Senate testimony, Cook said that "high inflation is a grave threat to a long, sustained expansion, which we know raises the standard of living for all Americans and leads to broad-based, shared prosperity."
- "That is why I am committed to keeping inflation expectations well anchored."
What the Trump admin is alleging
What they're saying: Pulte, posted on X a letter to the attorney general stating that Cook "has falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statutes."
- She took out a mortgage on a house in Michigan represented to be her principal residence, and afterward, a loan on a condominium in Atlanta that was also described as her principal residence, per Pulte.
- Pulte also alleges that Cook listed the condominium as a rental property in 2022, despite having stated in mortgage documents it would serve as her primary residence.
- There is no accusation or evidence that Cook has defaulted on either loan.
How Cook has responded
The other side: Cook dismissed Pulte's accusations on Wednesday night.
- "I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve," Cook said in a statement.
- "I have no intention of being bullied to step down from my position because of some questions raised in a tweet," she continued.
- "I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts."
Why the Trump admin might want to get rid of Cook
Zoom out: If Trump successfully fires Cook, it would bring him closer to having his own appointees control the Fed's Board of Governors.
- Politico reported that Trump is seeking to fast-track a Senate confirmation for top White House economist Stephen Miran as a Fed governor.
- Miran, once confirmed, will join Michelle Bowman and Christopher Waller as Trump appointees on the seven-person board. With another vacancy, Trump appointees would attain a 4-3 majority.
- That would give Trump appointees power over the Fed system's budgets, staffing, and selection of reserve bank presidents.
Zoom in: Cook's term is not scheduled to expire until 2038, so her successful removal would make that goal feasible during Trump's second term.
