Doj Calls For Powell To Fire Cook Over Fraud Accusation

The Justice Department is pushing for the ouster of Federal Reserve Gov. Lisa Cook from the central bank as it considers an investigation into allegations of mortgage fraud.

U.S. Pardon Attorney Ed Martin, who has been tapped by Attorney General Pamela Bondi to oversee investigations into mortgage fraud, confirmed that he was probing claims that Cook had lied on mortgage applications in a letter addressed to Fed Chair Jerome Powell, according to a copy obtained by POLITICO.

In the letter, Martin urged Powell to “remove Ms. Cook from your Board. Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”

Martin’s letter, which was first reported by Bloomberg, was sent as President Donald Trump and administration officials have sought to pressure Fed policymakers into lowering interest rates. Trump has called for Cook’s resignation.

Federal Housing Finance Agency Director Bill Pulte sent a criminal referral to the Justice Department last week alleging that Cook had claimed two separate homes as a primary residence. The combative FHFA director has logged similar referrals for Sen. Adam Schiff (D-Calif.) and New York Attorney General Letitia James — and on Thursday said his agency was investigating Cook over a separate property.

Fed board members can be removed only by the president “for cause,” a provision that has not been fully litigated but has generally been interpreted to mean that the president can’t fire a central banker over policy disagreements. Cook was nominated by President Joe Biden and confirmed by the Senate on a party-line vote in 2022.

While Pulte has said that he believes that Trump has enough evidence to fire Cook for cause, it’s unclear how Powell could act. The Federal Reserve Act offers no indication that the chair can dismiss board members.

Fed spokesperson Darren Gersh declined to comment. Martin did not immediately respond to requests for comment.

Cook has denied wrongdoing and said on Wednesday that she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”