The saga surrounding the upcoming termination of the Fed’s DEI hire just escalated dramatically after the Justice Department announced it would investigate Fed Governor Lisa Cook, after a top Justice official informed Fed Chair Jerome Powell of the probe and encouraged him to remove her from the board, in a letter sent Thursday.
Ed Martin, the DOJ official who led similar investigations into Adam Schiff NYAG General Letitia James, told Powell that Cook’s case “requires further examination.”
“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.”
Bill Pulte wrote a letter to Attorney General Pam Bondi and Martin on Aug. 15 suggesting that Cook may have committed a criminal offense. The letter alleged that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Cook on Wednesday said she intended to remain at the central bank, after Trump also called for her resignation. She may, however, find that difficult to do with a criminal probe – or worse – hanging over her head.
“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in an emailed statement via a Fed spokesperson. “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.”
A resignation would create another opening for Trump to fill on the Fed board as the president piles pressure on the central bank to lower rates. Trump has lashed out at Powell as “Too Late” for not slashing rates months ago, and suggested he too should step aside. Trump has also heavily criticized Powell and the Fed over the cost of its ongoing headquarters renovation project.
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