Federal Reserve Governor Lisa Cook is in serious trouble. Bill Pulte, another member of the Fed appointed by former President Donald Trump, has recently raised these charges in a very public manner. Since then, Pulte has alleged that Cook doctored her documents. They are the fruits of a national investigation into mortgage fraud involving Michigan and Georgia properties. Such claims have led to an uproar given their egregious nature in impugning the integrity of a high-ranking official in the Federal Reserve.
Pulte’s claims come at a historic moment of criticism of the Federal Reserve. Here, the attention is especially directed at the leadership of Chairman Jerome Powell. Pulte has not been shy about his criticism of Powell. He has teamed up with Trump in demanding lower interest rates, underscoring the growing blister of discontent between political leaders and the Fed’s hawkish stance. Indeed, through his Twitter feed, Trump has made it clear that he is not happy with the Fed. He has even suggested firing Powell and lambasted the institution’s monetary moves.
Despite the weighty nature of these charges, Lisa Cook has still not publicly responded to Pulte’s allegations. Appointed by President Joe Biden in 2022, Cook, a prominent scholar of monetary policy, represents a historic change in the Federal Reserve’s often conservative composition. Her silence on the matter raises questions regarding her position and the potential implications for the Fed’s operations.
Bill Pulte’s attacks don’t stop at Cook, though – he’s taken aim at airport officials engaging in what he calls wrongful actions. Notably, he has accused New York Attorney General Letitia James of mortgage fraud, further amplifying his claims against various government figures. The mood inside the Federal Reserve is getting heated. This change became a real possibility following the recent resignation of Fed Governor Adriana Kugler earlier this month.
The context for this outrageous drama is President Trump’s long campaign to bring the Federal Reserve under his control. He has been vocal about who he thinks should be nominated to take over the Fed chairmanship. This is exciting and important, given that Powell’s term expires next year. Economic adviser Stephen Miran is rumored to be a candidate for nomination to the Fed board, signaling Trump’s intent to reshape the institution’s leadership.
Trump’s anger towards the Federal Reserve has been fueled by rising construction costs associated with building renovations at the Fed’s headquarters. Yet people are restless and angry, and this tells an enormous tale. Political discourse has shifted so that Fed economic decisions are front and center.