Lisa Cook is currently on the Federal Reserve’s board, having made history as the first Black female to serve there. Today she is under new scrutiny, this time for an even more serious offense, potential mortgage fraud. That controversy has already triggered demands for her resignation and calls to fire her, including from Donald Trump, who has returned to criticizing the central bank’s actions.
Appointed by President Joe Biden in May 2022, Cook’s term on the Federal Reserve board now runs through 2038. She previously served on the Council of Economic Advisers under former President Barack Obama prior to joining the Fed. There, she was awarded accolades for her insightful economic intellectual contributions and determinative works.
In June 2021, Cook executed a 15-year mortgage on a residential property he owned in Ann Arbor, Michigan. She intends to occupy this property as her principal residence. In July of 2021, she purchased a second home in Atlanta, Georgia. She pledged to make this house her primary residence and obtained a 30-year mortgage.
The initial small spill became a major incident. Then US Federal Housing Finance Agency director Bill Pulte went public with his allegations that Cook had engaged in mortgage fraud. Pulte pushed the US Department of Justice to review her actions and ultimately referred her for a criminal investigation. He has since called for her to resign from that board of Federal Reserve governors.
Donald Trump took to the airwaves to go for Cook’s throat on the allegations. He parlayed the embarrassment into an opportunity to attack both her personally and the central bank. Trump’s remarks have reignited discussions about the Federal Reserve’s leadership and accountability.
Throughout this tale, both Cook and the Federal Reserve have been mute. Since the accusations surfaced, they have failed to respond to multiple requests for comment. This unusual silence adds to the mystery and drama of what’s happening there. It has raised a lot of questions about Cook’s future on the six-member board.