US Federal Reserve Governor Lisa Cook firmly declared she will not step down from her position despite mounting pressure from President Donald Trump, who has called for her resignation following allegations of mortgage fraud, AP News reported.
The controversy emerged after Bill Pulte, head of the Federal Housing Finance Agency and a Trump appointee, publicly accused Cook of falsely designating two properties—in Ann Arbor, Michigan, and Atlanta, Georgia—as primary residences to secure favourable mortgage terms.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook asserted in a statement issued by the Federal Reserve.
She emphasised her commitment to addressing “legitimate questions” regarding her financial history with accurate information and facts. The allegations centre on mortgage applications dating to mid-2021, prior to her appointment to the Fed by former President Joe Biden in 2022. Pulte urged the Justice Department to investigate, claiming the arrangements potentially violated lending rules.
This incident marks the latest escalation in Trump’s efforts to influence the Federal Reserve, an institution traditionally insulated from direct political interference. Trump has repeatedly criticised the Fed’s chair, Jerome Powell, for maintaining interest rates at current levels and has openly expressed his desire to install officials who support rate reductions.
Should Cook resign or be removed, it would afford Trump an opportunity to appoint a successor aligned with his economic policies, potentially altering the balance of the Fed’s governing board.
Cook’s term extends to 2038, the longest of any current board member. Democratic lawmakers, including Senators Chuck Schumer and Elizabeth Warren, have rallied behind Cook, condemning Trump’s actions as an attack on the Fed’s independence.
Lisa Cook, the first Black woman to serve on the Fed’s board, has reiterated her focus on her official duties amid the allegations.
