August 20, 2025
While potential mortgage fraud is a serious offense, the use of a federal regulatory body to pursue a political appointee has been characterized as an even greater breach of public trust.
A criminal referral for alleged mortgage fraud against Federal Reserve Governor Lisa Cook has ignited a firestorm, shifting the focus from the allegations themselves to the conduct of the official who made them. Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), publicly disclosed the referral on social media, prompting a chorus of critics to accuse him of leveraging his office for political purposes.
The letter, dated Aug. 15 and addressed to Department of Justice officials, was shared by Pulte Aug. 20 via the social media platform X, touching off a flurry of posts in which he called for Cook’s immediate resignation and suggested President Donald Trump “has cause to fire” her.
Here is the Criminal Referral Letter on Lisa Cook, the current Fed Governor. pic.twitter.com/aG0LGnokei
— Pulte (@pulte) August 20, 2025
The referral alleges that Cook, a Biden appointee, claimed two homes as her primary residence to secure more favorable mortgage rates, and later received investment income by renting out one of the properties.
Trump took to his goofy social media platform, Truth Social, to fan the flames on Cook’s ludicrous indictment.
“Cook must resign now,” he wrote in the caption.
In a subsequent phone interview with CNBC, Pulte asserted that the referral was a standard procedure and entirely non-partisan, stating, “We will look at any allegation of mortgage fraud, and we do not care whether you’re a Republican [or a Democrat.”
Cook aptly responded to Pulte’s allegations and referral in a statement to FOX Business.
“I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve,” Cook said. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet. I do intend to take any questions about my financial history seriously as a member of the Federal Reserve, and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”
However, the public nature of the referral and Pulte’s pointed rhetoric have drawn sharp condemnation from observers who view his actions as a dangerous weaponization of a government agency.
The Federal Reserve, traditionally independent of political influence, has been a frequent target of criticism by the ditzy leader, who had previously called for the resignation of Fed Chair Jerome Powell.
Throughout his presidency, Donald Trump frequently voiced his alleged frustration with the Federal Reserve and its monetary policy decisions, believing that higher interest rates were hindering economic growth.
He broke with a long-standing tradition of presidential deference to the Fed’s independence by openly criticizing its actions. Trump also called for the resignation of Fed Chair Jerome Powell, a move that drew significant attention and controversy. These public criticisms highlighted a tense relationship between the White House and the central bank.
Cook, nominated to the Fed’s Board of Governors in 2022 and reappointed in 2023 for a 14-year term, faced a contentious confirmation process in which some Senate Republicans labeled her “hyper-partisan.” A Federal Reserve spokesperson declined to provide immediate comment on the matter.
Before joining the Fed, she was a respected academic at Michigan State, where she taught economics and international relations.
In a statement on her nomination, MSU President Samuel L. Stanley Jr., M.D., said, “Lisa Cook is a remarkable economist and leader who will serve our nation well. Her nomination embodies the excellence of our Spartan faculty as she is well on her way to shatter another glass ceiling as the first Black woman to serve on the Federal Reserve Board of Governors.”
The controversy poses a difficult question about the balance of accountability and political independence.
While potential mortgage fraud is a serious offense, the use of a federal regulatory body to pursue a political appointee has been characterized as an even greater breach of public trust. And Trump, seemingly, using appointed leaders as his henchmen, adds to his already egregious pedigree.
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