Washington – A federal judge temporarily blocked the Trump administration’s attempt to remove Federal Reserve Governor Lisa Cook from her position, amid allegations of mortgage fraud stemming from documents filed years prior to her confirmation. The legal battle centers on claims made by conservative activist Bill pulte that Cook falsified bank documents and property records to secure more favorable loan terms.
The dispute highlights an unprecedented effort by a president to fire a top fed official and raises questions about the vetting process for high-ranking economic appointments. Pulte, in a criminal referral to Florida Attorney General Pam bondi last month, alleged Cook “falsified residence statuses” related to properties in Ann Arbor, Michigan, and Atlanta, Georgia, potentially constituting mortgage fraud. Trump subsequently announced on Truth Social that he was removing Cook, a move the Biden administration challenged in court.
Cook’s lawyers have vehemently denied the allegations, stating in a recent court filing that she “did not ever commit mortgage fraud.” The Federal Reserve has indicated it will abide by the court’s decision in the ongoing case.
The controversy originated with Pulte’s claims, which surfaced publicly in September 2023. He alleged discrepancies in Cook’s mortgage applications. Cook joined the Fed after being confirmed by the Senate in May 2022, following a national security questionnaire filed with the Biden administration in December 2021.
the Trump administration appealed the judge’s temporary block on Cook’s termination and is seeking a ruling before the Fed’s interest-rate setting committee meets next tuesday, where Cook has a permanent vote.
