Bill Pulte, the well-connected political operative and Donald Trump advisor has made very serious allegations against Federal Reserve Governor Lisa Cook. He alleges that she forged documents and property records in order to secure better loan rates. Pulte contends that the Michigan and Georgia properties should be counted as Cook’s principal residence. This accusation would make her a criminal mortgage fraud conspirator, at minimum.
Pulte’s allegations came to light soon after he was appointed by Donald Trump in March – a move that has drawn considerable media attention. Trump responded vigorously to the allegations, calling for Cook to “resign, now!!! Trump’s call for resignation ups the ante of his months long campaign against several widely respected election infrastructure officials. He’s been especially vicious towards New York Attorney General Letitia James, accusing her of committing mortgage fraud.
Lisa Cook, who was appointed to the Federal Reserve by President Joe Biden in 2022, has yet to publicly address these allegations. Tellingly, Pulte’s merits-based claims rest solely on the argument that Cook filed fraudulent claims about her ownership of the properties. He even photo-shopped what appears to be Cook’s signature into his post. He has not produced any credible proof to support his claims.
The implications of Cook’s potential resignation could be significant for Trump’s future influence over the Federal Reserve. If Cook were to retire, that would give Trump yet another chance to nominate a replacement to take the vacancy. While Trump has some control over monetary policy, he shouldn’t direct it entirely. This is doubly true today, with Jerome Powell’s term expiring next year.
Beyond the public pressure on Cook, Trump has decided that he’s frustrated with Powell too and has considered firing him. Powell’s speech to the Kansas City Fed annual economics summit in Jackson Hole, Wyoming, this coming Friday is highly anticipated. His address may lead to increased speculation about possible new leadership at the Federal Reserve.
With Adriana Kugler’s recent resignation as a Fed Governor, that opportunity has arisen. As a result, now Trump is able to nominate his economic adviser, Stephen Miran, to the board. This ongoing shakeup within the Federal Reserve signals a potentially transformative period as political dynamics unfold.