The U.S. Department of Justice has subpoenaed Federal Reserve board members in an investigation targeting Lisa Cook. Critics say this is part of Donald Trump’s broader attempt to seize control of the central bank and undermine its independence.
DOJ Launches Investigation
Federal prosecutors are probing alleged false statements on mortgage applications tied to Cook’s properties in Ann Arbor (Michigan) and Atlanta (Georgia). A third property in Cambridge (Massachusetts) is also under scrutiny, with critics claiming it was improperly listed as a second home while generating rental income.
The investigation stems from Bill Pulte, whom Trump appointed to lead the Federal Housing Finance Agency. Pulte filed two criminal referrals accusing Cook of mortgage fraud.
Political Pressure and the Fight for Power at the Fed
Donald Trump has seized on these allegations as grounds to remove Cook from the Fed’s board. He claims this would allow him to gain control. “We’ll have a majority very shortly,” he told reporters.
But Lisa Cook is fighting back. She filed a lawsuit accusing Trump of fabricating the charges to replace her with a loyalist. Her legal team argues that the effort is an attack on the Fed’s independence and a veiled move to also undermine Fed Chair Jerome Powell.
Arguments From Both Sides
Trump’s administration: says it has the authority to remove a Fed governor “for cause” under the Federal Reserve Act.Cook’s legal team: calls the allegations politically motivated, stressing that she committed no fraud and that any discrepancies were administrative errors, not intentional deception.
A Wider Pattern?
The investigation is being led by Ed Martin, briefly acting U.S. attorney in D.C., whose confirmation was blocked after he supported people charged in the January 6 Capitol riot.
Cook is not the only target. Similar mortgage fraud probes have been launched against New York Attorney General Letitia James and California Senator Adam Schiff — both outspoken Trump critics. Observers warn this may be part of a broader political strategy.
The Reality of Mortgage Fraud Sentences
According to Sentencing Commission data, only 38 people were sentenced for federal mortgage fraud last year, with an average prison term of just 14 months. A 2023 Federal Reserve Bank of Philadelphia study found that about one-third of single-family home investors misrepresent residency status to obtain better mortgage terms.
This means prosecutors must prove intent — the crux of Cook’s defense.
👉 The upcoming Fed meeting on September 16 could be pivotal. If Cook is removed by then, Trump’s allies may hold a board majority. Still, Powell has already signaled that rate cuts are coming — regardless of political pressure.
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Trump’s Push on the Fed: Lisa Cook Faces Mortgage Fraud Allegations, Powell Under Pressure
The U.S. Department of Justice has subpoenaed Federal Reserve board members in an investigation targeting Lisa Cook. Critics say this is part of Donald Trump’s broader attempt to seize control of the central bank and undermine its independence.
DOJ Launches Investigation Federal prosecutors are probing alleged false statements on mortgage applications tied to Cook’s properties in Ann Arbor (Michigan) and Atlanta (Georgia). A third property in Cambridge (Massachusetts) is also under scrutiny, with critics claiming it was improperly listed as a second home while generating rental income. The investigation stems from Bill Pulte, whom Trump appointed to lead the Federal Housing Finance Agency. Pulte filed two criminal referrals accusing Cook of mortgage fraud.
Political Pressure and the Fight for Power at the Fed Donald Trump has seized on these allegations as grounds to remove Cook from the Fed’s board. He claims this would allow him to gain control. “We’ll have a majority very shortly,” he told reporters. But Lisa Cook is fighting back. She filed a lawsuit accusing Trump of fabricating the charges to replace her with a loyalist. Her legal team argues that the effort is an attack on the Fed’s independence and a veiled move to also undermine Fed Chair Jerome Powell. Arguments From Both Sides Trump’s administration: says it has the authority to remove a Fed governor “for cause” under the Federal Reserve Act.Cook’s legal team: calls the allegations politically motivated, stressing that she committed no fraud and that any discrepancies were administrative errors, not intentional deception.
A Wider Pattern? The investigation is being led by Ed Martin, briefly acting U.S. attorney in D.C., whose confirmation was blocked after he supported people charged in the January 6 Capitol riot. Cook is not the only target. Similar mortgage fraud probes have been launched against New York Attorney General Letitia James and California Senator Adam Schiff — both outspoken Trump critics. Observers warn this may be part of a broader political strategy.
The Reality of Mortgage Fraud Sentences According to Sentencing Commission data, only 38 people were sentenced for federal mortgage fraud last year, with an average prison term of just 14 months. A 2023 Federal Reserve Bank of Philadelphia study found that about one-third of single-family home investors misrepresent residency status to obtain better mortgage terms. This means prosecutors must prove intent — the crux of Cook’s defense.
👉 The upcoming Fed meeting on September 16 could be pivotal. If Cook is removed by then, Trump’s allies may hold a board majority. Still, Powell has already signaled that rate cuts are coming — regardless of political pressure.
#TRUMP , #Fed , #FederalReserve , #Powell , #USPolitics
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“