Cook has vowed to stay in her position and challenge the termination in court.
President Donald Trump announced in an Aug. 25 letter that he is firing Federal Reserve Governor Lisa Cook over mortgage fraud allegations.
“In light of your deceitful and potentially criminal conduct in a financial matter, [the American people] cannot and I do not have such confidence in your integrity,” wrote Trump in the letter.
Cook, appointed to the Fed Board of Governors in 2022 by President Joe Biden, said the firing was illegal and vowed to stay in her position. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said in a statement.
“I will not resign,” she continued. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Here are four takeaways.
Mortgage Fraud Allegations
In a criminal referral letter posted to X on Aug. 20, Bill Pulte, chairman of the Federal Housing Finance Agency, accused Cook of potentially falsifying bank documents and property records to secure more favorable loan terms and lower interest rates.
Pulte alleged that Cook may have misrepresented the status of two properties—one in Ann Arbor, Michigan, and another in Atlanta—by designating both as her primary residence in 2021, just weeks apart. It also alleges that Cook listed the Atlanta property for rent, despite declaring it as her primary residence in mortgage filings.
This prompted Trump to demand her resignation in an Aug. 20 Truth Social post. Days later, Trump told reporters he would fire her if she did not resign.
Cook, in a statement to The Epoch Times, confirmed she would not step down.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook 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.”
Commerce Secretary Howard Lutnick suggested that Cook should consider leaving voluntarily.
“It’s alleged that she’s committed mortgage fraud, and she says, ‘I’m not going anywhere,’” Lutnick told CNBC’s “Squawk Box.”
Ultimately, it comes down to whether she committed mortgage fraud, he added.
“Yes or no, and if you did commit mortgage fraud, please get out of the federal government,” he said. “Get out of the seat of the governor of the Federal Reserve and go away. You don’t deserve to be there if you’ve committed mortgage fraud, right?”
By Andrew Moran
