U.S. Director of Federal Housing William Pulte is sharing reports alleging to have “proof” that former Federal Reserve Governor Lisa Cook, fired by President Donald Trump for suspected mortgage fraud, is using her homes for rental income.
“NEW: VIDEO PROOF We have just received video proof that Lisa Cook’s declared ‘PRIMARY RESIDENCE’ is being RENTED out to tenants,” Pulte posted to X. “Cook RECENTLY CLAIMED to the U.S. Government that it was her PERSONAL RESIDENCE, but she’s renting it out? Good journalism, @Charlieleduff”
The video shows a man knocking on doors and speaking to a resident who says he is renting a home, and declining further comment.
“EXCLUSIVE – Lisa Cook is Cooked @pulte,” Charlie LeDuff, who shares his website on his X account, wrote Tuesday morning on X.
Cook said last week she would sue President Donald Trump’s administration to try to prevent her firing, according to her lawyer.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” said Abbe Lowell, Cook’s lawyer and a longtime Washington figure who has been an attorney for Hunter Biden.
“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action.”
Trump has criticized Fed Chair Jerome Powell for months because the Fed has left its key short-term interest rate unchanged at about 4.3% — relatively high compared with its level during the COVID-19 pandemic, when it was nearly zero.
Also Tuesday, the Fed itself weighed in for the first time on the Cook firing, saying it would “abide by any court decision.”
“Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only ‘for cause,'” the central bank said. “Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.”
A spokesperson said the Fed has deferred any decision on Cook’s working status and added that there is no official business before the board this week.
Trump appointed two members of the board, Christopher Waller and Michelle Bowman, in his first term and has named Steven Miran, a top White House economist, to replace Gov. Adriana Kugler, who stepped down unexpectedly Aug. 1. If Miran’s nomination is approved by the Senate and Trump is able to replace Cook, he would have a 4-3 majority on the Fed’s board.
For now, Miran would serve on the board only until Kugler’s term ends in January. Trump said Tuesday at a Cabinet meeting that he could instead nominate Miran to complete Cook’s term, which lasts until 2038, if he succeeds in firing her.
Trump on Tuesday acknowledged there would likely be a court fight.
“You always have legal fights,” he said. “She seems to have had an infraction, and you can’t have an infraction,” he added of Cook.
Pulte, a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, alleged in August that Cook had claimed two primary residences – in Ann Arbor, Michigan, and in Atlanta – in 2021 to get better mortgage terms. Mortgage rates are often higher on second homes or those bought to rent.
Trump said in a letter posted on his Truth Social platform late Monday that he was removing Cook effective immediately because of allegations she committed mortgage fraud.
Cook said in August she would not step down.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement. “I will not resign.”
The law that governs the central bank, the Federal Reserve Act, includes a provision allowing for the removal of Fed governors “for cause.”
To establish a “for cause” firing also requires a finding of fact, said Scott Alvarez, the Fed’s former general counsel and now adjunct professor at Georgetown Law.
“We know there’s allegations by Bill Pulte, but Lisa has not been able to respond yet,” Alvarez said. “So we don’t know if they’re true. Allegations are not cause.’”
Cook is the first Black woman to serve as a Fed governor. She was a Marshall Scholar and received degrees from Oxford University and Spelman College, and she has taught at Michigan State University and Harvard University’s Kennedy School of Government.
Information from Reuters and The Associated Press were used to compile this report.
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