Who is Lisa Cook? The top official pressured to resign by Trump’s camp

A new political storm is brewing around the Federal Reserve as President Donald Trump and his allies set their sights on Governor Lisa Cook, with accusations of mortgage fraud sparking calls for her resignation.

The controversy began after Federal Housing Finance Agency director Bill Pulte, a close Trump ally, sent a letter to the Justice Department on August 15 urging an investigation into Cook’s real estate dealings. According to Pulte, Cook allegedly misrepresented her primary residence status on two separate mortgages in Michigan and Georgia in 2021. He claims the conflicting declarations could amount to fraud.

Trump seized on those allegations Wednesday in a post on his social media platform, demanding that Cook “must resign, now!!!” The move escalates his long-standing campaign against central bankers he sees as hostile to his administration’s economic goals.

Pressure Campaign Against the Fed

This is not the first time Trump and his allies have directed attacks at the Federal Reserve. Chair Jerome Powell, often branded by Trump as “Too Late” for raising interest rates during the inflation crisis, has endured years of public criticism. Now the focus is widening to include other Fed officials, particularly those appointed by President Joe Biden.

For Pulte, the claims against Cook extend beyond politics. “It doesn’t matter if she’s a Democrat or Republican,” he told CNBC. “Mortgage fraud is mortgage fraud.” Still, Pulte has a record of loudly criticizing the Fed’s spending and interest rate decisions, fueling suspicion that the accusations also serve a political purpose.

The Federal Reserve has not issued a comment on the matter.

Political and Institutional Stakes

If Cook were forced to resign, Democrats would lose one of their few appointees on the seven-member Fed board. Currently, only Vice Chair Philip Jefferson and Governor Michael Barr would remain as Biden’s picks. Another seat recently opened following the resignation of Adriana Kugler.

Meanwhile, Trump’s nominee, economist Stephen Miran, is awaiting Senate consideration. Analysts say the timing of this controversy could boost Miran’s chances but question whether Cook has any incentive to step down before the Fed’s next meeting.

“She may wait this out,” Jaret Seiberg of TD Cowen Research noted, adding that resignation would not shield her from legal scrutiny if an investigation proceeds.

What Lies Ahead

The dispute comes as Fed officials gather in Jackson Hole, Wyoming, for their annual policy symposium — a global stage for monetary strategy. Powell is expected to hint at possible rate cuts later this year amid concerns about labor market weakness. Markets are already betting on a September cut.

For Trump, however, the battle is not just about rates. It’s about reshaping the Fed to align more closely with his administration’s agenda. Analysts warn that even if Cook departs and new appointees arrive, there is no guarantee Trump will secure the monetary policies he seeks.

As Joe Brusuelas, chief economist at RSM US, put it: “The administration knows it can’t simply push Powell around. The fight is about building enough influence inside the Fed to tip the balance.”

Cook, notably the first Black woman to serve on the Fed’s Board of Governors, now finds herself at the center of a political and legal fight that could reshape the balance of power inside one of the most influential financial institutions in the world.