Trump Removes Federal Reserve Governor Over Mortgage Allegations

President Donald Trump ousted Federal Reserve Governor Lisa Cook on Monday, accusing her of lying on mortgage forms by declaring two primary residences.

Allegations of Mortgage Fraud

Trump cited a criminal referral dated August 15, 2025, from William J. Pulte, Director of the Federal Housing Finance Agency, to Attorney General Pamela Bondi. In a statement, Trump wrote that the referral provided “sufficient reason to believe you may have made false statements on one or more mortgage agreements.”

He noted that Cook signed a document declaring a Michigan property as her primary residence for the coming year. Two weeks later, she signed another document stating that a Georgia property would serve as her primary residence. Trump argued, “It is inconceivable that you were not aware of your first commitment when making the second. It is impossible that you intended to honor both.”

Concerns About Integrity and Competence

Trump emphasized the Federal Reserve’s critical role in setting interest rates and regulating banks. He added that Americans must trust the honesty of those shaping monetary policy.

“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot, and I do not have such confidence in your integrity,” Trump wrote. “At a minimum, the conduct at issue exhibits gross negligence that calls into question your competence and trustworthiness as a financial regulator.”

Cook’s Response and Legal Status

Cook has not faced any criminal charges. FOX Business has contacted the Federal Reserve for comment on her removal.

Threats and Investigation

Trump had threatened to remove Cook on Friday amid ongoing mortgage fraud allegations. The Department of Justice is investigating following the referral filed by Pulte, a known Trump ally and critic of the Federal Reserve.

Trump told reporters, “I’ll fire her if she doesn’t resign. What she did was bad.”