Controversial Dismissal of Federal Reserve Member by Trump on Mortgage Fraud Allegations
Donald Trump, the President of the United States, in a letter published on the Truth Social platform, dismissed Lisa Cook, a member of the Federal Reserve Board, on charges of providing false information in mortgage contracts.
The letter claims that there is sufficient evidence indicating that Cook provided false information in one or more mortgage contracts. These allegations were initially raised by William Poole, the head of the Federal Housing Finance Agency (FHFA).
Poole, in a letter to Pam Bondi, the Attorney General, alleged that Cook provided false information in the process of obtaining loans for properties, including presenting properties as primary residences that were later offered for rent.
Lisa Cook, who was appointed by former President Joe Biden in 2022 as the first Black woman to join the Federal Reserve Board, was set to serve in this position until 2038.
She previously denied the allegations and stated that she is reviewing documents to respond to these claims, and that the allegations made in a social media post are not a reason for her resignation.
Her dismissal by Trump may face legal challenges because Federal Reserve law only allows the President to remove board members for valid reasons.
For several months, Trump has been pressuring the Federal Reserve to lower interest rates, but the board of this financial institution has refrained from doing so due to inflation concerns, particularly stemming from Trump’s proposed import tariffs.
Trump has also repeatedly called for the resignation of Jerome Powell, the Chairman of the Federal Reserve, but these requests have been unsuccessful.
According to some experts, Cook’s dismissal is seen as part of Trump’s efforts to restructure the Federal Reserve and align it with his policies.