President Donald Trump announced late Monday that he was removing Federal Reserve Governor Lisa Cook, a Joe Biden appointee, after allegations emerged that Cook submitted fraudulent mortgage documents.
Trump said “that there is sufficient cause to remove you from your position,” in a letter sent to Cook.
Cook, the third high-profile Democrat to become ensnared in allegations of mortgage fraud, said she would not leave the position, as Trump had no authority to fire her.
Most of the allegations have been referred to the Department of Justice by Bill Pulte, tapped by Trump to lead the Federal Housing Finance Agency, which oversees and regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks.
In an Aug. 15 letter to Attorney General Pam Bondi, Pulte said that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Here is the Criminal Referral Letter on Lisa Cook, the current Fed Governor. pic.twitter.com/aG0LGnokei
— Pulte (@pulte) August 20, 2025
Cook, a member of the Fed’s Board of Governors since 2021 whose term does not expire until 2038, the Wall Street Journal reported, is accused of the same misdeed allegedly committed by New York Attorney General Letitia James and California Democratic Sen. Adam Schiff: claiming two primary residences in mortgage documents.
Since loan-makers view mortgages on primary residences as less risky than mortgages on secondary homes, they are willing to offer better rates and more favorable terms if the property claimed is a primary place of residence.
Did Trump make the right decision in firing Cook?
However, the conditions under which one can claim two primary residences are so rare as to be practically nonexistent, and one would assume that a criminal referral by Pulte’s FHFA to the DOJ would have at least looked into possible exemptions that Cook and the two other prominent Democrats who’ve found themselves in hot water over this might have been able to take.
This showdown was likely coming sometime soon, Trump indicated on Friday.
“What she did was bad,” Trump told reporters Friday, according to CNBC. “So I’ll fire her if she doesn’t resign.”
Cook said she wasn’t going anywhere.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said, according to the Associated Press.
“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.”
Cook won’t be given a chance to do this, if Trump has his way.
“The Federal Reserve Act provides that you may be removed, at my discretion, for cause,” Trump said in the Monday letter.
“As set forth in the Criminal Referral dated August 15, 2025 … there is sufficient reason to believe you may have made false statements on one or more mortgage agreements. For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year.
“Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year. It is inconceivable that you were not aware of your first commitment when making the second. It is impossible that you intend to honor both.”
“At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator … I have determined that faithfully executing the law requires your immediate removal from office,” Trump added. “Thank you for your attention to this matter.”
🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW
— Rapid Response 47 (@RapidResponse47) August 26, 2025
You will perhaps not be surprised to learn that Cook’s attention in this matter is focused on keeping her job.
In a statement on Monday evening, The New York Times reported, Cook said that “no cause exists under the law” for her removal.
“I will not resign,” she said. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
To quote a certain football legend, get your popcorn ready — because this showdown is likely to be a preview of just how much trouble Adam Schiff and Tish James are really in. In the meantime, it brings up an important point: At this point, is there anyone related to Biden who won’t be credibly accused of committing mortgage fraud?
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