President Trump Threatens to Dismiss Federal Reserve Governor Lisa Cook Amid Mortgage Fraud Allegations

President Donald Trump has threatened to dismiss Federal Reserve Governor Lisa Cook if she does not resign, following allegations of mortgage fraud. The accusations, raised by Federal Housing Finance Agency Director Bill Pulte, involve claims that Cook designated two properties in Ann Arbor, Michigan, and Atlanta, Georgia, as her primary residences in 2021 to secure more favorable mortgage terms.

Cook, appointed by former President Joe Biden in 2022 and the first Black woman to serve on the Fed's Board of Governors, has denied any wrongdoing. She stated, "I have no intention of being bullied to step down from my position because of some questions raised in a tweet."

Under federal law, a president can only remove a sitting Fed governor for cause, typically interpreted as misconduct or malfeasance. If Trump proceeds with his threat, it could lead to a legal challenge, as no president has previously attempted to remove a Fed governor.

This development is part of a broader effort by the Trump administration to influence the Federal Reserve. Cook is one of three Biden-appointed governors whose terms extend beyond Trump's presidency, complicating his ability to appoint a majority to the seven-member board.

The Department of Justice has not commented on whether it will pursue an investigation into the allegations against Cook.