President Donald Trump and his allies increase the pressure on the US Central Bank (Federal Reserve). After chairman Jerome Powell this time Fed Governor Lisa Cook is at the center. This is done after accusations of mortgage fraud made public by Bill Pulte, director of the Federal Housing Finance Agency.
Allegations and political pressure
Pulte, a 37-year-old Republican, sent a letter to the PAM Bondi attorney-general last week in which he accused the cook of the forging of bank documents and ownership deeds to obtain more favorable mortgage conditions. According to the letter, the alleged fraud cases would relate to homes in Ann Arbor, Michigan, and Atlanta, Georgia.
President Trump has heard enough and endors the allegations on Wednesday via Truth Social with the words: “Cook must now resign !!!” With that, the president seems to be increasing his campaign against the Fed, after earlier calls for interest rates and personnel changes within the central bank.
Tensions within the Federal Reserve
The allegations against Cook, which is one of the seven Fed Governors, follow shortly after the departure of Fed Gouverneur Adriana Kugler, who was replaced by Trump-Loyalist Stephen Miran. If the pressure increases, Cook could be the next member of the Federal Open Market Committee (FOMC) that loses its function.
Cook recently voted in line with FED chairman Powell to leave the interest unchanged. Only Michelle Bowman and Christopher Waller wore this majority.
Lisa Cook has a long academic and policy career. She obtained her doctorate economy at the University of California, Berkeley, and was a professor at Michigan State University. She previously worked as a senior economist at the White House Council of Economic Advisers under the Obama government.
The allegations against Cook have not yet been confirmed by official authorities. For the time being she remains a member of the FOMC, but the political pressure from the Trump government seems to be increasing.
Source: https://newsbit.nl/politieke-storm-rond-fed-trump-eist-nog-een-ontslag-na-vermeende-hypotheekfraude/
