August 20th 2025.
A recent criminal referral has sparked controversy surrounding Federal Reserve Governor Lisa Cook. The focus has shifted from the allegations of mortgage fraud against her to the actions of the individual who made the referral. Bill Pulte, the Director of the Federal Housing Finance Agency, made the referral public through social media, causing many to accuse him of using his position for political gain.
Pulte shared the letter, dated August 15th and addressed to the Department of Justice, on the social media platform X on August 20th. This led to a flurry of posts in which he called for Cook's immediate resignation and even suggested that President Donald Trump should fire her. In the letter, it is alleged that Cook, who was appointed by President Biden, claimed two homes as her primary residence in order to secure more favorable mortgage rates. It is also claimed that she received investment income by renting out one of the properties.
Trump, known for his controversial use of social media, took to his platform, Truth Social, to further fuel the fire surrounding Cook's indictment. He wrote in the caption of a post, "Cook must resign now." Pulte also gave a phone interview to CNBC, stating that the referral was a standard procedure and had no political motives. He said, "We will look at any allegation of mortgage fraud, and we do not care whether you're a Republican or a Democrat."
Cook responded to Pulte's allegations and the criminal referral in a statement to FOX Business. "I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve," Cook said. "I have no intention of being bullied into stepping down from my position because of questions raised in a tweet. I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering accurate information to answer any legitimate questions and provide the facts."
However, the public nature of the referral and Pulte's strong language have drawn criticism from those who see his actions as a dangerous use of a government agency. The Federal Reserve, known for its independence from political influence, has been a frequent target of criticism by Trump. He had previously called for the resignation of Fed Chair Jerome Powell.
Throughout his presidency, Trump openly expressed his frustration with the Fed and its monetary policy decisions. He believed that higher interest rates were hindering economic growth and broke the long-standing tradition of presidential deference to the Fed's independence by publicly criticizing its actions. He also called for the resignation of Fed Chair Jerome Powell, which caused significant controversy.
Cook, who was nominated to the Fed's Board of Governors in 2022 and reappointed in 2023 for a 14-year term, faced a contentious confirmation process. Some Senate Republicans labeled her as "hyper-partisan." A Federal Reserve spokesperson declined to comment on the matter immediately. Before joining the Fed, Cook was a respected academic at Michigan State, where she taught economics and international relations.
In a statement on her nomination, MSU President Samuel L. Stanley Jr., M.D., said, "Lisa Cook is a remarkable economist and leader who will serve our nation well. Her nomination embodies the excellence of our Spartan faculty, and she is well on her way to shattering another glass ceiling as the first Black woman to serve on the Federal Reserve Board of Governors."
This controversy raises questions about the balance between accountability and political independence. While potential mortgage fraud is a serious offense, the use of a federal regulatory body to pursue a political appointee has been deemed a greater breach of public trust. Trump's apparent use of appointed leaders as his pawns only adds to his already controversial reputation.
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