WASHINGTON (AP) — President Donald Trump on Wednesday, August 20, 2025, publicly called for Federal Reserve Governor Lisa Cook to resign, intensifying his administration’s pressure campaign on the independent central bank. The demand came after Bill Pulte, Director of the U.S. Federal Housing Finance Agency (FHFA) and a Trump appointee, accused Cook of committing mortgage fraud and urged the Justice Department to investigate, according to reports from The Associated Press and CBS News.
Pulte alleged on social media that Cook, who was appointed to the Fed’s governing board by former president Joe Biden in 2022, had “falsified bank documents and property records to acquire more favorable loan terms.” Specifically, Pulte claimed that Cook designated a condo in Atlanta as her primary residence shortly after taking out a loan on a Michigan home, which she also declared as a primary residence, as detailed by Al Jazeera. Mortgage rates for primary homes are typically lower than those for secondary residences or investment properties, as noted by CBS News.
“Cook must resign, now!!!” President Donald Trump wrote on his Truth Social platform
“Cook must resign, now!!!” Trump wrote on his Truth Social platform, amplifying Pulte’s accusations. This move is seen as the latest front in the Trump administration’s broader push to reshape the Federal Reserve and influence its monetary policy, particularly the benchmark interest rate, which the president has repeatedly demanded be lowered. Trump has frequently criticized Fed Chair Jerome Powell over the central bank’s caution in cutting borrowing costs, according to Fox Business.
The allegations against Cook come at a time when the administration is also pursuing similar mortgage fraud allegations against other prominent Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James, as reported by Morningstar. A Justice Department spokesperson declined to comment on whether an investigation into Cook would be opened.
Lisa Cook is one of three Biden appointees to the Fed whose terms extend beyond the current presidential term, complicating the administration’s efforts to appoint a majority to the seven-member Board of Governors. Her term is set to expire in January 2038, according to WXXI News. Cook has not publicly commented on the allegations.
The Federal Reserve is designed to operate independently of day-to-day political pressures in setting interest rates. However, this independence has been repeatedly challenged by the current administration. Earlier this month, Federal Reserve Governor Adriana Kugler unexpectedly resigned, creating an earlier-than-expected opening that the administration has moved to fill with its own nominee, Stephen Miran, as reported by POLITICO Pro. While the President can replace the Fed Chair, Jerome Powell, when his term expires in May 2026, gaining a clear majority on the full Board of Governors is seen as crucial for asserting greater control over the central bank’s policy direction.
