New Evidence Undermines Trump’s Justification for Firing Fed Governor

Newly obtained documents challenge the justification provided by former President Donald Trump for the firing of Federal Reserve Governor Lisa Cook. The central allegation against Cook, that she committed mortgage fraud, is under scrutiny following a review by Reuters. Trump cited this accusation as the basis for his decision to remove her from the Fed Board last week.

The mortgage fraud claim originated from Bill Pulte, Director of the Federal Housing Finance Agency. He alleged that Cook had designated her Michigan home and an Atlanta condominium as “primary residences” to secure favorable loan terms. This allegation prompted an investigation by the Justice Department and was leveraged by Trump to suggest Cook had engaged in conduct unbecoming of a Federal Reserve governor. Recently, a Massachusetts condominium has also been added to the complaint.

Evidence contradicts these claims. A 2021 loan estimate for the Atlanta property clearly states that Cook designated it as a “vacation home.” Furthermore, her 2021 SF-86 security clearance form identifies the condo as a “second home.” County tax records confirm that Cook never sought a primary-residence exemption for the Atlanta address. These documents undermine the assertion that she misrepresented her intent to lenders.

Legal experts have commented on the implications of this evidence. According to a housing law expert cited by Reuters, the documentation indicating that Cook consistently listed the Atlanta property as a second home makes it significantly more difficult to substantiate any mortgage fraud charges.

Cook, who has played a critical role in shaping the Federal Reserve’s interest rate policy, has denied any wrongdoing. She characterized her removal as a politically motivated attack. The ongoing investigation by the Justice Department is likely to intensify scrutiny regarding her dismissal and may lead to a legal challenge over her firing.

As this situation unfolds, the impact of these revelations on Cook’s career and the broader implications for the Federal Reserve’s governance will be closely monitored by political analysts and the financial community alike.