Trump Calls on Appointee Lisa Cook to Resign over Mortgage Application Allegations amid Pressure for Lower Interest Rates

In a recent development, President Trump has urged Federal Reserve Governor Lisa Cook to resign amid allegations of false statements on mortgage applications. This move comes as part of an intense push by the president to persuade the central bank to lower interest rates.

Cook, appointed to the Fed board by former President Joe Biden in 2022, recently voted with her fellow governors to maintain current interest rates. Last week, Bill Pulte, who manages mortgage giants Fannie Mae and Freddie Mac, sent a letter to Attorney General Pam Bondi requesting an investigation into Cook’s mortgage applications filed in 2021.

The correspondence, made public on social media, claims that Cook applied for mortgages on two properties – one in Michigan and another in Georgia – within a fortnight. The applications stated each property as Cook’s primary residence, although the Georgia condo was later listed as a rental. Lenders frequently offer more favorable terms for loans on a borrower’s primary home.

In a social media post, Pulte questioned, “How can this individual oversee interest rates if she is accused of lying to benefit her own interest rates?”

Pulte has previously levied similar accusations against Trump critics Sen. Adam Schiff and New York Attorney General Letitia James. On Wednesday, Trump took to social media, demanding Cook’s immediate resignation.

As of yet, neither Cook nor the Federal Reserve have responded to Pulte’s allegations or the president’s call for her resignation. Despite being designed to operate independently from the White House in determining interest rates, President Trump has been vocal about his belief that borrowing costs should be reduced. He has repeatedly criticized Fed Chairman Jerome Powell, nicknaming him “Too Late,” and has also expressed disapproval towards the central bank over cost overruns during its headquarters renovation.

Following a full percentage point cut in interest rates last year, the Fed has remained on hold since December. Inflation remains above the Fed’s target of 2%, and some policymakers are concerned that the president’s tariffs may further increase prices.

Two appointees of Trump on the Fed’s rate-setting committee dissented from last month’s vote, advocating for a resumption of interest rate cuts. Investors anticipate a quarter percentage point reduction in borrowing costs at the Fed’s next meeting in September, following a significant slowdown in the labor market in recent months.

Trump has an opportunity to appoint another Fed governor, with the unexpected resignation of Adriana Kugler this month. The president has nominated White House economic adviser Stephen Miran to fill Kugler’s seat on a temporary basis.

Cook’s term extends until January 2038. If she were to step down now, it would create another opportunity for Trump to appoint a like-minded governor to the Fed’s seven-member board.