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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump official lodges new criminal referral against Fed Governor Lisa | |
Cook | |
By Chris Isidore, CNN | |
Updated: | |
1:35 PM EDT, Fri August 29, 2025 | |
Source: CNN | |
A Trump administration housing official has sent a new criminal | |
referral to the Justice Department against Federal Reserve Governor | |
Lisa Cook, as she sues the administration to fight the president’s | |
efforts to fire her. | |
The new criminal referral, made late Thursday and revealed in a post by | |
Federal Housing Finance Agency director Bill Pulte, alleges Cook | |
identified a property in Cambridge, Massachusetts, as a second home on | |
official documents, but instead used it as an investment property. | |
Cook, the first Black woman to serve as a Fed governor, has challenging | |
President earlier this week. A hearing on that suit | |
The battle over Cook’s job is about more than one position: The | |
nation’s central bank operates independently so that officials can | |
make economic decisions without pressure over political considerations. | |
Trump’s attempts to fire Cook – and to force the bank to cut | |
interest rates – get to the heart of the question about the Fed’s | |
independence and whether Trump’s presidential powers have limits. | |
The Fed has been resistant to cutting rates this year, citing Trump’s | |
tariffs and their potential to raise inflation. Trump, however, has | |
repeatedly demanded lower borrowing costs, often lobbing personal | |
insults in the process. | |
Cook has not been charged with any crimes. | |
At the Friday hearing on her civil suit, her attorney, Abbe Lowell | |
argued the mortgage fraud allegations are a pretext because of | |
Trump’s political ire with the Fed for not lowering interest rates. | |
In a statement to CNN, Lowell denied there was any validity to the | |
allegations against his client. | |
“This is an obvious smear campaign aimed at discrediting Gov. Cook by | |
a political operative who has taken to social media more than 30 times | |
in the last two days and demanded her removal before any review of the | |
facts or evidence,” Lowell said in the statement. “Nothing in these | |
vague, unsubstantiated allegations has any relevance to Gov. Cook’s | |
role at the Federal Reserve, and they in no way justify her removal | |
from the board.” | |
In court Friday in Cook’s civil case, the Justice Department didn’t | |
acknowledge any criminal investigation it may be conducting. | |
But lawyers for the department have argued to a judge weighing the | |
legality of her firing that “a Governor’s failure to carefully read | |
her own financial documents casts a shadow over the Federal Reserve’s | |
decisions,” according to a Justice Department court filing this week. | |
Still, the Justice Department has tasked Ed Martin—whom the attorney | |
general is using as a special investigator for a smattering of | |
politically charged allegations that President Donald Trump is | |
interested in—to look into the allegations around Cook, according to | |
a person familiar with the investigation. | |
Many of Trump’s attacks on the Fed have been focused on Fed Chair | |
Jerome Powell, whom he appointed during his first term in office, and | |
who was reappointed to another term under President Joe Biden. | |
Trump has not tried to remove Powell, despite . Some of those threats | |
prompted a sell-off in US equity markets by investors concerned about | |
Fed independence. The president does not have the power to remove a | |
member of the Fed Board except “for cause,” not just because of a | |
disagreement over monetary policy. But Trump used the allegations of | |
mortgage fraud against Cook as justification for her removal. | |
In the Thursday referral to the DOJ, Pulte described the new | |
allegations as “extremely troubling.” | |
“Second homes receive lower mortgage costs than investment | |
properties, because investment properties are inherently riskier,” he | |
wrote. | |
The FHFA had already made a criminal referral alleging that Cook | |
committed mortgage fraud by getting mortgages for two different | |
properties, one in Michigan, another in Georgia, and claiming on both | |
mortgages that they would be her primary residence. | |
This story has been updated with additional reporting and context. | |
– CNN’s Jeremy Herb, Phil Mattingly and Evan Perez contributed to | |
this report. | |
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