Former President Donald Trump has escalated his criticism of the U.S. Federal Reserve, calling for Federal Reserve Governor Lisa Cook to resign amid ongoing scrutiny.
On Wednesday, Trump took to his Truth Social platform to demand, “Cook must resign, now!!!” He shared a Bloomberg report highlighting a call by Federal Housing Finance Agency (FHFA) Director Bill Pulte for increased investigation into Cook’s involvement in two mortgage cases.
Bill Pulte, a known Trump ally, reportedly sent a letter to the U.S. Attorney General urging a probe into Cook, suggesting potential criminal misconduct. This development is part of broader efforts by the Trump administration targeting alleged mortgage fraud linked to prominent Democrats viewed as political opponents.
Lisa Cook, the first Black woman to serve on the Federal Reserve Board, currently sits on the Fed’s rate-setting committee. However, it remains unclear whether any formal investigation against her will proceed.
Trump’s calls come amid mounting frustration with Fed Chair Jerome Powell’s cautious approach to interest rates. The former president has repeatedly slammed Powell for not reducing rates sooner, arguing that elevated mortgage costs are hurting the housing market.
On Tuesday night, Trump reiterated his demand for a “major rate cut,” dismissing inflation concerns and labeling Powell “a disaster” in another social media post.
Despite a steady U.S. Consumer Price Index (CPI) of 2.7% in July, inflation remains above previous months. Fed officials continue to navigate a delicate balance—aiming to control inflation while protecting the labor market—amid ongoing debates over the timing of future rate cuts.
It is important to note that Trump’s ability to remove Federal Reserve officials is legally constrained. A recent Supreme Court ruling affirmed that Fed governors can only be removed for cause, such as misconduct, not over policy disagreements.
Lisa Cook was appointed to the Federal Reserve Board in May 2022 and reappointed in September 2023, with her term set to expire in 2038. Before joining the Fed, she served on the Council of Economic Advisers during the Obama administration.
Earlier this year, Trump also criticized the Fed for an expensive renovation project at its headquarters, suggesting it as another reason to dismiss Powell—though he later tempered that threat.
As political tensions mount, the spotlight on the Federal Reserve’s leadership and decision-making process continues to intensify amid ongoing economic challenges.
