Fed’s Cook Under Criminal Probe: DOJ Serves Subpoena in Shock Move
Federal Reserve Governor Lisa Cook finds herself in the crosshairs of the Justice Department—subpoena served, investigation underway.
Behind the Bench
No details emerge from the original filing, but the mere existence of a federal subpoena signals serious legal scrutiny. Cook maintains her position at the Fed—for now.
Power Play or Accountability?
High-profile investigations rarely surface without cause. Whether it’s regulatory overreach or legitimate misconduct remains unclear. Either way, trust erodes faster than a shitcoin in a bear market.
Timing is everything—especially when the DOJ knocks.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Last month, President TRUMP attempted to fire Cook after Federal Housing Finance Agency (FHFA) Director Bill Pulte accused her of mortgage fraud. The alleged fraud centers around Cook listing two separate properties as primary residences and renting out one of the properties. Primary residences generally qualify for lower mortgage rates than investment or rental properties.
Cook Contests Firing amid Concerns Over Fed Independence
Cook isn’t going down without a fight, accusing Trump of firing her without cause in order to “forward his agenda to undermine the independence of the Federal Reserve.” In addition, Cook has requested an emergency order to remain in her role while the case plays out.
If Cook is removed from her position and replaced with a Trump loyalist, the majority of the Fed Board WOULD comprise Trump-appointed officials, which analysts argue could heighten concerns about the Fed’s independence and its ability to make unbiased policy decisions.
