Bessent Demands Fed’s Cook Resign Over Mortgage Fraud Allegations—If Proven True
Pressure mounts on the Federal Reserve as calls for accountability echo through financial circles.
Scandal at the Top
Fed official Lisa Cook faces explosive mortgage fraud allegations—prompting investment strategist Scott Bessent to declare she should resign immediately if claims hold weight. The financial world watches as regulators face rare public scrutiny from within their own ranks.
Institutional Credibility on the Line
Bessent’s blunt ultimatum underscores growing impatience with ethical lapses in banking oversight. With public trust in financial institutions already battered, another scandal threatens to deepen cynicism toward the very systems meant to ensure stability—because nothing says 'sound governance' like potential fraud at the central bank.
The Fed now confronts a brutal test of its integrity apparatus. How it responds could define its credibility for years.
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Bessent also stressed that the Fed should remain independent and free of political bias in order to do its job effectively, although the central bank has “made a lot of mistakes.” That’s likely a reference to the Fed holding the federal funds rate steady this year.
Cook Fights to Keep Her Position
Last week, Cook filed a lawsuit against Trump, arguing that he has no legal grounds or cause to fire her. Furthermore, the lawsuit accused Trump of violating the Federal Reserve Act.
Trump attempted to fire Cook after Federal Housing Finance Agency (FHFA) Director Bill Pulte alleged that she named two separate properties as her principal residence, unfairly receiving lower mortgage rates in the process.
