Cook Defies Trump's Calls to Resign Over Mortgage Fraud Allegations

In a firm response, Lisa Cook, a member of the Federal Reserve Board of Governors, announced her intention to remain in her position, defying calls from President Donald Trump for her resignation. The calls for her to step down stem from allegations of mortgage fraud, which were raised by a close ally of Trump.

In a statement sent via email, Cook was unequivocal: "I do not intend to be pushed out because of questions raised in a tweet. However, I take any inquiries about my financial record seriously and will gather accurate information to respond to any legitimate questions and present the facts."

Trump's demand for Cook's resignation came after Federal Housing Finance Agency Director Bill Polt had urged U.S. Attorney General Pam Bondi to investigate Cook's mortgage loans. This move represents the latest step in Trump's intensified campaign against the Federal Reserve, aimed at increasing legal scrutiny of figures associated with the previous administration of President Joe Biden, who nominated Cook for the position.

In a tweet on Wednesday, Trump stated that Cook "should resign now," citing Polt's allegations. In a letter to the Department of Justice, Polt had claimed that Cook "falsified bank documents and property records to obtain better loan terms, which may constitute mortgage fraud under criminal law."

Should Cook resign, it would provide Trump with another opportunity to appoint a new member to the Federal Reserve Board, amidst his ongoing pressure on the central bank to lower interest rates. Trump has repeatedly criticized Fed Chair Jerome Powell, even suggesting that he should also step down, accusing him of being too slow to cut rates.

Following Trump's call, financial markets experienced fluctuations. The dollar depreciated against major currencies, while U.S. Treasury bonds and gold prices rose, reflecting the impact of these political developments on the economy.