U.S. President Donald Trump on Wednesday called for the resignation of Fed Governor Lisa Cook, which, according to analysts, is part of a process to undermine the independence of the Federal Reserve and control the major levers of power.
WASHINGTON, Aug. 21 (Xinhua) — U.S. President Donald Trump on Wednesday called for the resignation of Fed Governor Lisa Cook.
This comes as a staunch Trump ally alleged that the top U.S. Fed official committed mortgage fraud, which is “appropriate for referral to the U.S. Department of Justice for consideration of criminal prosecution,” according to media reports.
Taking to social media, Trump on Wednesday wrote: “Cook must resign, now!!!”
In the letter posted on X, Federal Housing Finance Agency director Bill Pulte claimed Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Pulte was referring to mortgages in the U.S. state of Michigan and Georgia that Cook took out in June and July 2021 respectively. The letter, dated Aug. 15 and addressed to Attorney General Pam Bondi, said Cook stipulated that the two residences would be her principal addresses for at least a year, a move that could enable her to get a more favorable mortgage rate.
While no investigation has been disclosed so far, Cook said on Wednesday she had “no intention of being bullied to step down.”
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” Cook said in a media statement.
Pulte, an outspoken ally of the U.S. president, has been a vocal critic of the Fed, as well as Fed Chair Jerome Powell, for failing to heed the White House’s calls to lower interest rates, CNN reported.
According to Quartz, an American business news website, Pulte “in the months after his Senate confirmation … added to his job description helping orchestrate a fiery campaign against Powell and demanding the central bank chief to step down.”
“The new focus on Cook is an expansion of the Trump administration’s intense pressure campaign against the Fed, specifically central bankers who aren’t perceived as allies of the president,” CNN opined.
The American Broadcasting Company (ABC) reported that Trump “appears to be rallying for another open seat on the board, which would allow him to appoint someone more aligned with his views.”
Analysts have also expressed concerns as the Trump administration made the new move in its bid to take control of the Federal Reserve and crimp its independence. In the past months, Trump has bashed Powell over the Fed’s monetary policy decisions and pressured the central bank to cut interest rates.
“This is part of a process to undermine the independence of the Federal Reserve,” Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland, told Xinhua.
Brookings Institution Senior Fellow Darrell West told Xinhua that “Trump wants his people on the Federal Reserve so the bank lowers interest rates. It is all about wanting to control all the major levers of power. He needs people who are loyal to him and follow his instructions.”
Similarly, Christopher Galdieri, a political science professor at Saint Anselm College in the northeastern state of New Hampshire, told Xinhua that “Trump views the entire federal government as something that works for him and to advance his political agenda.”
“Anybody who’s not on board with that is, in his view, corrupt and needs to be replaced, regardless of facts and regardless of what the law says,” Galdieri said.
Dean Baker, co-founder of the Center for Economic and Policy Research, told Xinhua that “I think it will make it less likely the Fed will lower rates … Since they won’t want to be seen buckling to (White House) pressure.”
“The effort to oust Cook will likely lead to higher long-term rates and less investment in the United States,” Baker added. ■
Trump pushes U.S. Fed official to quit
