Federal Reserve Governor Lisa Cook is facing mounting calls for her resignation after allegations of mortgage fraud surfaced this week, thrusting the central bank into the political spotlight at a time of heightened tension over U.S. monetary policy. The controversy erupted on August 20, 2025, when President Donald Trump publicly demanded Cook’s immediate resignation, echoing accusations made by Bill Pulte, head of the U.S. Federal Housing Finance Agency (FHFA) and a close Trump ally. The allegations center on Cook’s mortgage applications for properties in Michigan and Georgia, raising questions about her financial disclosures and her future at the Fed.
According to Reuters, the spark for this political firestorm was a letter from Pulte to U.S. Attorney General Pam Bondi, in which he urged the Department of Justice to investigate Cook for allegedly making false statements on mortgage applications. Pulte claimed that in June and July 2021, Cook sought mortgages on a house in Michigan and a condo in Atlanta, Georgia, each time declaring the property as her primary residence. Notably, the Georgia condo was listed as a rental just two months after the mortgage was secured. This detail, Pulte argued, could suggest an attempt to secure more favorable mortgage terms, since lenders often provide better rates for a borrower’s primary home.
Pulte did not mince words in his public posts, stating, “She needs to quit because what she did is grounds for firing.” He added on social media, “How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” The FHFA director also shared portions of his letter and what he described as Cook’s mortgage documents on X (formerly Twitter), fueling a wave of speculation and partisan commentary online.
President Trump, never one to shy away from a public confrontation with the Federal Reserve, quickly amplified the call for Cook’s ouster. On his social media platform, Trump wrote, “Cook must resign, now!!!” The president’s post was the latest in a series of sharp criticisms targeting the Fed and its leadership, particularly Chair Jerome Powell, whom Trump has repeatedly lambasted for not lowering benchmark interest rates more aggressively. Trump has even nicknamed Powell “Too Late” and has taken the central bank to task for cost overruns in its ongoing headquarters renovation.
Lisa Cook, for her part, has pushed back against the allegations and the political pressure. In a statement quoted by NPR, she said, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.” Cook added, “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve.” She noted that she is currently gathering information to provide the facts about her mortgage applications. As of press time, neither Cook nor the Federal Reserve had responded directly to further requests for comment from reporters.
The timing of this controversy is notable. Cook, who was appointed to the Fed board by then-President Joe Biden in 2022, has been a key vote on the central bank’s seven-member board. Just last month, she sided with the majority in a decision to hold interest rates steady, despite mounting pressure from the White House for rate cuts. Two Trump appointees on the Fed’s rate-setting committee dissented, saying they were ready to resume cutting rates—a position that aligns with Trump’s persistent calls for lower borrowing costs.
The Fed’s independence from the White House is a long-standing tradition, but Trump’s ongoing campaign to reshape the central bank’s leadership and policy stance has put that independence to the test. Earlier this month, Trump got an unexpected opportunity to further influence the Fed when Governor Adriana Kugler resigned. Trump swiftly nominated Stephen Miran, his White House economic adviser, to fill Kugler’s seat on a short-term basis, as reported by Reuters. Miran’s appointment, coupled with the pressure on Cook, could tilt the balance on the board if Cook were to step down before her term expires in January 2038.
The allegations against Cook are not without precedent in the current political climate. Pulte, the FHFA director, has previously raised similar claims against other prominent Trump antagonists, including Democratic Congressman Adam Schiff and New York Attorney General Letitia James. These moves have drawn criticism from some quarters as partisan attacks, while others argue that public officials must be held to the highest standards of transparency and accountability—especially those with significant influence over the nation’s financial system.
The underlying issue at the heart of the allegations is the question of primary residence status on mortgage applications. Lenders typically offer more favorable terms for loans on a borrower’s primary residence compared to investment properties or second homes. By declaring both the Michigan house and the Georgia condo as her primary residence within weeks of each other, Cook may have inadvertently raised red flags. The fact that the Georgia condo was listed as a rental two months later adds another layer of complexity. However, as Cook has stated, she is reviewing her records and intends to address any questions about her financial history thoroughly.
The political stakes are high. If Cook were to resign, Trump would have the opportunity to appoint another like-minded governor to the Fed’s influential board, potentially accelerating his push for lower interest rates. Investors are already betting that the Fed will cut borrowing costs by a quarter percentage point at its next meeting in September, especially after recent data showed a significant slowdown in the labor market. Inflation, meanwhile, remains above the Fed’s 2% target, and some policymakers are concerned that Trump’s tariffs could add further upward pressure on prices.
For now, the central bank finds itself in the crosshairs of a political battle that shows no signs of abating. With Cook’s future uncertain and the president’s campaign for lower rates in full swing, all eyes are on the Fed’s next moves—and on whether the institution can maintain its independence amid the storm.
The coming weeks will be crucial for both Cook and the Federal Reserve. As the investigation unfolds and the political rhetoric intensifies, the outcome could have lasting implications for the central bank’s leadership, its policy direction, and its credibility in the eyes of the public and global markets alike.
