Donald Trump Demands Fed Governor Lisa Cook Quit Over Mortgage Allegations
US President Donald Trump has demanded the resignation of Federal Reserve Governor Lisa Cook, citing allegations over mortgages she holds in Michigan and Georgia.
The row erupted after William Pulte, a Trump ally and Director of the Federal Housing Finance Agency, claimed Cook had wrongly designated multiple homes as “primary residences” when securing loans. He made the allegations in a social media post earlier this week.
Cook firmly rejected the calls to step aside. She said she had “no intention of being bullied to step down”, insisting she would remain in her post.
She added in a statement: “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.”
The claims against Cook focus on loans taken out in 2021, before she joined the Fed. Records show she obtained three mortgages that year, with interest rates in line with the market averages at the time.
Pulte also suggested he is probing property Cook owns in Massachusetts. The US Justice Department has confirmed it is reviewing the matter.
Trump quickly seized on the allegations, posting on his own social media platform: “Cook must resign, now!!!” His intervention sparked immediate backlash from Democrats, who accused him of trying to undermine the independence of the central bank.
BREAKING: President Trump just formally DEMANDED the resignation of Democrat-appointed Federal Reserve Governor Lisa Cook after she was criminally referred to the DOJ for MORTGAGE FRAUD.
“Cook must resign, now!!!”
This would give Trump YET ANOTHER Fed appointment for someone… pic.twitter.com/ffjxE7NRUI
— Eric Daugherty (@EricLDaugh) August 20, 2025
In a statement, members of the House Financial Services Committee said: “Donald Trump is making up blatant lies to oust the first Black woman to serve on the Federal Reserve Board, so he can replace her with another unqualified loyalist who will do his bidding.
This is another attack on the Fed’s independence. We can’t let this happen.”
Senator Elizabeth Warren echoed those concerns, warning: “The president and his administration should not weaponize the federal government to illegally fire independent Fed Board members.”
The clash highlights Trump’s ongoing battle with the Federal Reserve. He has repeatedly attacked Fed Chair Jerome Powell, demanding lower interest rates and even calling for his resignation.
While Trump has the power to appoint a new chair when Powell’s term ends next May, Cook’s role, along with two other Biden-appointed members, will extend beyond Trump’s current time in office, limiting his immediate influence.
Trump has already moved to install allies where possible, nominating Stephen Miran to replace Adriana Kugler, who recently resigned from the board. But gaining a majority will take time. Powell himself could remain a Fed governor until 2028.
Critics point out that Trump has previously relied on fraud allegations to pursue political enemies. He was himself fined $355 million last year in a civil fraud case led by New York Attorney General Letitia James, which he is appealing.
Similar claims were aimed at Democrat Adam Schiff, who ran Trump’s first impeachment trial, though both Schiff and James deny wrongdoing.
Proving mortgage fraud, legal experts note, is far from straightforward. Banks are often aware of the facts behind a borrower’s loan application, even when residency claims appear inconsistent.
The dispute comes at a time when mortgage politics and economics are under intense scrutiny on both sides of the Atlantic. In the UK, concerns are mounting that recent mortgage rate cuts could stall if inflation remains stubbornly high, putting homeowners under renewed pressure.
For now, Cook is standing her ground. Trump, meanwhile, shows no signs of backing off.
