The DOJ is potentially launching an investigation into Federal Reserve Governor Lisa Cook — unless she's fired first
Justice Department official Ed Martin in Washington, DC. (Craig Hudson For The Washington Post via Getty Images)
The Department of Justice is potentially launching an investigation into Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, according to a letter seen by Bloomberg News. The notification comes only a day after President Donald Trump pushed for her resignation from the central bank.
In the letter, senior DOJ official Ed Martin urged Fed Chair Powell to remove Cook from her Board of Governors post.
“At this time, I encourage you to remove Ms. Cook from your Board,” Martin wrote in the letter, per Bloomberg. “Do it today before it is too late!"
Bill Pulte, the head of the Federal Housing and Finance Agency, sent a criminal referral on Wednesday to the DOJ, alleging that Cook had been misleading in her mortgage applications for a pair of residential properties in Georgia and Michigan.
Following the referral, President Trump was blunt in pushing for her resignation. "Cook must resign, now!!!" he said in a short social media post.
The White House and Department of Justice did not immediately respond to a request for comment.
Cook, for her part, is digging in. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said in a statement provided by a Fed spokesperson on Wednesday. “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.”
Pulte's referral letter — first posted on social media — described mortgage documents it had obtained about Cook, alleging she had "falsified bank documents and property records to obtain more favorable loan terms." Over the course of a month in 2021, Cook obtained primary residence mortgages on two properties in Michigan and Georgia, declaring both to be her main residence.
Trump recently had an opportunity to imprint his stamp on the central bank after the early resignation of former Fed Governor Adriana Kugler. That allowed him to name White House aide Stephen Miran to the slot, at least for now. He must still be confirmed by the Senate.
Another opening in the Board of Governors would pave the way for the president to install a second pick who's receptive to his constant demand for lower interest rates. Still, Trump's ability to fire a Senate-confirmed appointee is extremely limited. Only the Fed chair can theoretically remove a sitting governor for cause, usually defined as conducting "malfeasance in office" or "neglect of duty" in the position.
Cook was nominated by former President Joe Biden and confirmed by the Senate in a May 2022 party-line vote. She is the first Black woman to serve on the Fed's Board of Governors, a seven-member group that takes frequent votes on monetary policy and helps regulate the financial sector. Her current term expires in 2038.
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