the staff of the Ridgewood blog
WASHINGTON, D.C. — In a historic first for the Federal Reserve, Board Governor Lisa Cook announced she is filing a lawsuit to challenge her dismissal by President Donald Trump, marking the first-ever termination of a Fed governor in the central bank’s 111-year history.
Trump cited allegations of mortgage fraud in firing Cook, a move that immediately ignited a legal and political firestorm. Under the Federal Reserve Act of 1913, the president can remove a board member “for cause”, but the courts will now likely decide whether that standard was met.
DOJ Investigation Into Mortgage Fraud Claims
The Department of Justice (DOJ) has reportedly opened an investigation after Bill Pulte, head of the Federal Housing Finance Agency and a Trump ally, accused Cook of falsifying mortgage documents to obtain favorable loan terms.
Allegations include:
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Listing multiple properties—an Atlanta condo and a Michigan residence—as “primary homes” simultaneously.
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Potential violations of federal mortgage fraud statutes.
Cook has denied wrongdoing and retained high-profile Washington attorney Abbe Lowell to represent her in the fight against her ouster.
Fed Independence Under Pressure
The firing intensifies ongoing tensions between Trump and the Federal Reserve, as he has repeatedly pushed for lower interest rates. With a recent Biden-appointed governor resigning earlier this month, Trump is positioned to fill a majority of the Fed board seats before Chair Jerome Powell’s term ends next year.
The Federal Reserve, often described by the Supreme Court as a quasi-private institution, has declined to clarify whether Cook still has office access or continues to receive her salary.
Controversy Over $2.5 Billion Fed Headquarters Renovation
Adding fuel to the dispute, Trump criticized the central bank’s ongoing “Palace of Versailles”–style renovation of its Washington headquarters, a project that has already ballooned to $2.5 billion and sparked bipartisan criticism in Congress.
What Comes Next
Legal experts expect the Supreme Court may ultimately weigh in on Trump’s authority to remove a Fed governor. Meanwhile, the DOJ’s investigation into Cook could take months, leaving the Federal Reserve in a state of unprecedented uncertainty as it navigates both political and financial pressure.
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typical DEI hire
prosecute to the fullest extent of the law.
next up fat fani and lard ass leticia
Looks kind of haggard…
Appalling comment. Ugh.
You can look up Lisa Cook’s academic writings.
It’s very enlightening.
I couldn’t find anything in the extensive list regarding monetary policy.
Maybe she was hired for a different reason.
Aunt Jemima was let go as well.
and Elizabeth Warren was taken off the Land O Lakes packaging.
It’s early but I think we have our Post of the Day !
sue the $hit out DJT.
and go to jail for mortgage fraud