Trump fires Lisa Cook in the last step to pack the Federal Reserve with supporters
Cook, who was appointed by former President Joe Biden in the seven -member Federal Reserve Board, became the target of Federal Housing Financing Office (FHFA) Director Bill Pulte last week. Pulte accused Cook of mortgage fraud and called on attorney -general Pam Bondi to investigate the purchase of Cook of two houses in 2021.
By claiming that both houses were purchased as a primary stay, Pulte said that Cook “forged bank documents and real estate data to acquire more favorable loan conditions, possibly mortgage fraud under the criminal status.”
But no formal costs have been submitted by the Ministry of Justice Against cook. In the Letter Firing CookTrump quotes the criminal reference from Pulte to Bondi as giving sufficient reason to fire her, although the FHFA director does not play a role of law enforcement. Trump stated that, as set out in that reference, “there is sufficient reason to believe that you may have made false statements about one or more mortgage agreements.”
Trump wrote: “The American people must be able to have complete confidence in the honesty of the members entrusted with the establishment of policy and supervising the Federal Reserve. In the light of your deceptive and potentially criminal behavior in a financial issue, she cannot and I don’t have that confidence in your integrity.”
Since his re -election, Trump has been fighting against Federal Reserve chairman Jerome Powell on interest rates. In April he openly started to say that he could fire Powell. But the Negative reactions From the financial markets every time the president suggested that he would fire Powell (first in April and again in July) led him to look for alternatives. He now seems to replace members of the board of directors with his supporters.
On August 1, Fed Gouverneur Adriana Kugler, another Biden nominated, announced her resignation and finished her term of office almost six months early.
“Writing was on the wall two months ago,” said Logan Mohtashami, lead analyst Logan Mohtashami, Monday. “Trump wants lower rates, and he will place so many of his own people in the Fed Chamber to go against Powell. The figures are now growing against Powell to his advantage.”
Cook had refused to resign under the pressure of Trump.
“I don’t intend to get out of my position because of a few questions asked in a tweet,” she said in a statement. “I intend to take questions about my financial history seriously as a member of the Federal Reserve and so I collect the accurate information to answer legitimate questions and to provide the facts.”
