Trump Ramps Up Fed Pressure, Now Takes Aim at Governor Lisa Cook in Bold Power Move

Federal Reserve Governor Lisa Cook finds herself squarely in Trump's crosshairs as the former president intensifies his campaign against central bank independence.

The Political Calculus

Trump's latest salvo against Cook—a respected economist and the first Black woman to serve on the Fed's Board of Governors—signals deepening political interference in monetary policy. No specific policy disagreements cited, just pure political theater targeting one of the few voices advocating for broader economic inclusion.

Market Implications

Watch for increased volatility in rate-sensitive assets as traders price in potential Fed politicization. Bitcoin barely blinked—because decentralized money doesn't care about political appointments. Traditional finance meanwhile keeps playing musical chairs with political appointees while pretending it's actually about monetary policy rigor.

This isn't about economics—it's about consolidating control over every lever of government, including the supposedly independent ones. Because nothing says 'stable monetary policy' like subjecting interest rates to the same partisan circus as everything else in Washington.

Key Takeaways

• Federal Housing Finance Agency Director Bill Pulte requested that the Department of Justice investigate mortgage applications filed in 2021 by Federal Reserve Governor Lisa Cook, alleging she violated mortgage law.
• President Trump said Cook should resign immediately, which would allow him to appoint a replacement to the Fed policy committee that sets interest rate policy.
• Trump in recent months has berated Fed Chair Jerome Powell for not cutting interest rates, and has also accused the central bank head of mismanaging a large renovation at Fed headquarters.

President Donald TRUMP is expanding his attacks on the Federal Reserve, this time targeting Governor Lisa Cook.

In a social media post on Wednesday, Trump said "Cook must resign, now!!!" The post pointed to an allegation that Cook had engaged in mortgage fraud, which a member of the Trump administration had levied earlier in the day. The Federal Reserve did not immediately reply to a request for comment on the allegations.

This is the latest in a string of criticisms and allegations against the Federal Reserve, which Trump has denounced for keeping interest rates elevated. However, the push to have Cook step down marks an escalation in the president's battle with the Fed.

Until now, Trump has focused his attacks on the Fed's chair, Jerome Powell. In addition to name-calling and threats, Trump has accused Powell of mismanaging government money in a renovation project of the central bank's main offices.

Economists and analysts have said the allegations against Powell may be one way that Trump is trying to remove the chair. Powell, whose term expires next May, and other members of the Fed's policy-setting committee can only be removed "for cause."

Cook joined the Federal Reserve in 2022 and her term expires in 2038. If Cook were to step down or be removed as a result of an investigation, Trump WOULD be able to immediately replace her with a nominee who may be more amenable to Trump's wishes for lower interest rates.

How Did We Get Here?

In a letter posted to social media on Wednesday and addressed to the Department of Justice, Federal Housing Finance Agency Director Bill Pulte requested an investigation into Cook. Pulte alleges she applied for two mortgages around the same time in 2021, claiming both properties would be her primary residence.

In a televised interview with CNBC later in the day, Pulte said lenders consider mortgages for personal residences less risky, often resulting in lower interest rates. So-called “occupancy fraud” can lead to fines and even prosecution.

Pulte also said this allegation differs from past calls for Powell to step down. He said the Trump administration's disagreements with Powell are over policy, while the accusations against Cook suggest financial wrongdoing.

Cook is one of 12 members of the Fed's policy committee, which meets eight times a year to set interest rates and discuss other monetary policy issues.

Earlier this month, in a surprise move, Fed Governor Adriana Kugler announced she would be stepping down. Trump appointed Stephen Miran, the head of the WHITE House Council of Economic Advisors, as Kugler's replacement.

Fed Has Stood Pat on Rates This Year

The Fed has held its benchmark interest rate steady in 2025 after cutting it three separate times late last year, just before Trump took office. During the policy committee's July meeting, two governors—Christopher Waller and Michelle Bowman—dissented from the consensus, calling for rates cuts. It was the first time in decades there had been more than one dissent.

Trump has alleged the Fed was politically motivated in its decisions to cut rates last year, and he's demanded that the central bank resume cutting rates to give the economy a boost.

Powell, for his part, has said the Fed needs to see more data on how the wide-ranging tariffs imposed by the Trump administration are affecting inflation before adjusting policy. Inflation remains well above the Fed's annual target of 2%, while the broader economy remains solid, Powell has argued. The Fed worries that cutting rates too soon could cause inflation to surge.

Powell is due to deliver a highly anticipated speech Friday at the Jackson Hole Symposium, a gathering of central bankers from around the world. Investor expectations are running high that the Fed will cut rates at the next policy meeting in September, and market participants will be looking for signals from Powell that he expects to do just that.