A top Department of Justice official (DOJ) is calling for Fed Chair Jerome Powell to fire one of his top Federal Reserve officials, Governor Lisa Cook. In a letter published Thursday, directed at Powell, special attorney for mortgage fraud Ed Martin wrote that the Fed should remove Cook from her post. The call for firing her comes after allegations of mortgage fraud were raised against the Fed governor.
FHFA Director Bill Pulte accuses Fed Governor Cook of committing fraud in 2021 while seeking mortgages on two properties — a home in Michigan and a condo in Atlanta — both of which she described as her primary residence within a two-week period. “At this time, I encourage you to remove Ms. Cook from your Board,” Martin wrote. “Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”
Fed Chair Jerome Powell cannot fire any of the Fed Governors. However, it does ramp up pressure against Cook to possibly resign. The Fed Governor does not appear phased by the allegations or heat under her seat at the Fed. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” she said. “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.”
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The White House and FHFA Director Bill Pulte have driven several allegations and investigations into officials in the US government who are against US President Donald Trump. Just last month, the president accused U.S. Senator Adam Schiff (D-California) — who led impeachment proceedings against Trump when he was a House member — of mortgage fraud as well.
The Federal Reserve and its members have been under scrutiny throughout 2025 for several reasons, notably due to the Fed’s spending and not lowering interest rates. Earlier this year, Trump publicly called for Jerome Powell to resign, despite being the President who initially appointed him during his first term in office. The Fed has yet to comment on the call for Governor Lisa Cook to step down.