• President Trump demands Federal Reserve Governor Lisa Cook resign over mortgage fraud allegations.
• Cook asserts she will not be bullied and plans to respond to questions regarding her financial history.
• The Justice Department has opened an investigation into the allegations against Cook.
• Cook’s tenure on the board was appointed by President Biden and is scheduled to last until 2038.
• Trump aims to shape the Federal Reserve board to align with his economic policies.

President Donald Trump has publicly called for the resignation of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud stemming from accusations made by Federal Housing Finance Agency Director Bill Pulte. In a post on social media, Trump declared, “Cook must resign, now!!!” shortly after Pulte suggested Cook may have falsified bank documents regarding mortgage applications for properties in Michigan and Georgia, potentially committing mortgage fraud. Pulte’s referral to the Justice Department was detailed in a letter claiming Cook misrepresented her residence status between two properties to secure more favorable loan terms, as reported by ABC News, India Times, and HuffPost.

In response to Trump's demand for her resignation, Cook firmly stated, “I have no intention of being bullied to step down from my position,” emphasizing her commitment to transparency regarding her financial matters. Cook’s intention to provide accurate information demonstrates her readiness to face the allegations levied against her, according to reports from AA and HuffPost.

The allegations have prompted the Justice Department to initiate an investigation, with Official Ed Martin pressuring Fed Chair Jerome Powell to remove Cook, as stated in communications reported by Bloomberg and South China Morning Post. During a recent museum visit, Trump reiterated his stance, asserting, “I’ll fire her if she doesn’t resign,” further expressing dissatisfaction with the Federal Reserve’s handling of interest rates. This approach parallels his longstanding criticisms of Fed Chair Jerome Powell over the Board's performance, as highlighted by Reuters.

Cook, who is notably the first Black woman to serve on the Federal Reserve's Board of Governors, was appointed by President Biden and her term is scheduled to extend until 2038. This situation underscores ongoing tensions between the Trump administration's objectives and the operational independence typically associated with the Federal Reserve, as articulated by various industry watchers and political analysts, including criticisms from lawmakers such as Maxine Waters, who defended Cook against what she described as politically motivated attacks, according to Al Jazeera and Al Jazeera.