DOJ Demands Fed Chair Powell Fire Top Official Lisa Cook in Shocking Power Move

Federal turmoil erupts as the Department of Justice takes unprecedented action against the Federal Reserve's leadership.

The Pressure Mounts

Jerome Powell faces direct pressure from the DOJ to remove Lisa Cook from her powerful position—a move that sends shockwaves through financial circles. The demand cuts straight to the heart of Fed independence and raises eyebrows across Washington.

Institutional Implications

This confrontation bypasses traditional protocols and puts Powell in an impossible position. The clash between justice department mandates and central bank autonomy creates a regulatory gray area that Wall Street will absolutely exploit—because nothing says 'stable markets' like inter-agency warfare.

Washington's latest power play proves that even the Fed isn't immune to political theater—meanwhile, your 401(k) quietly weeps in the corner.

FHFA Director Bill Pulte accuses Fed Governor Cook of committing fraud in 2021 while seeking mortgages on two properties — a home in Michigan and a condo in Atlanta — both of which she described as her primary residence within a two-week period. “At this time, I encourage you to remove Ms. Cook from your Board,” Martin wrote. “Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”

Fed Chair Jerome Powell cannot fire any of the Fed Governors. However, it does ramp up pressure against Cook to possibly resign. The Fed Governor does not appear phased by the allegations or heat under her seat at the Fed. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said. “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 White House and FHFA Director Bill Pulte have driven several allegations and investigations into officials in the US government who are against US President Donald Trump. Just last month, the president accused U.S. Senator Adam Schiff (D-California) — who led impeachment proceedings against TRUMP when he was a House member — of mortgage fraud as well.

The Federal Reserve and its members have been under scrutiny throughout 2025 for several reasons, notably due to the Fed’s spending and not lowering interest rates. Earlier this year, Trump publicly called for Jerome Powell to resign, despite being the President who initially appointed him during his first term in office. The Fed has yet to comment on the call for Governor Lisa Cook to step down.