Fed’s Cook Faces Pressure to Resign Over Mortgage Fraud Allegations

Treasury Secretary Scott Bessent has called for Federal Reserve Governor Lisa Cook to step down if allegations of mortgage fraud against her are proven true. The remarks came during a Reuters interview, where Bessent questioned whether President TRUMP was overstepping by attempting to remove Cook. "Well, or is it you’re having to do the Fed’s job for ’em?" he remarked.

Cook has filed a lawsuit against Trump, asserting that his attempt to fire her lacks legal basis and violates the Federal Reserve Act. The controversy stems from claims by FHFA Director Bill Pulte that Cook misrepresented her principal residence to secure lower mortgage rates.

Bessent emphasized the importance of Fed independence, though he acknowledged the central bank’s recent missteps—likely a nod to its decision to hold interest rates steady this year.