Trump Fires Fed Governor Lisa Cook

The Pulte accusations stem from allegations that Cook listed both a home in Michigan and a home in Georgia as her primary residence several months before she was nominated to the Fed board by former President Joe Biden.

Although the Supreme Court ruled earlier this year that the president generally has the power to remove independent agency members, the conservative majority stipulated in that case that Federal Reserve board members can only be fired for cause. Trump cited the mortgage fraud claims as cause to fire Cook, a justification that could invite a legal challenge to the firing, as well as backlash from members of Congress.

The independence of the Fed from the executive branch has long been viewed by investors as an asset. The value of the dollar immediately dropped following the news that Trump moved to fire Cook.

Earlier this year, Trump threatened to fire Powell, although he backed off that threat in recent weeks.

Another Fed governor who voted to hold interest rates steady, Adriana Kugler, recently and unexpectedly resigned, handing Trump another opening on the board. Two members of the Federal Open Market Committee voted to lower interest rates at the last meeting: Christopher Waller and Michelle Bowman.

In the letter to Bondi, Pulte said it appears Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”

“This has included falsifying residence statuses for an Ann Arbor, Michigan-based residence and an Atlanta, Georgia-based property in order to potentially secure lower interest rates and more favorable loan terms,” Pulte wrote.

Pulte has emerged, perhaps unexpectedly, as one of Trump’s most vociferous attack dogs and the administration’s leading critic of the Fed’s monetary policy and Powell.

In his role as FHFA Director, Pulte oversees the government-sponsored enterprises Fannie Mae and Freddie Mac.