President Donald Trump could potentially gain a new ally on the Federal Reserve if allegations of potential mortgage fraud force Federal Reserve Governor Lisa Cook to resign.
Trump on Wednesday urged Federal Reserve Governor Lisa Cook to resign after Federal Housing Finance Agency Director Bill Pulte asked Attorney General Pam Bondi to investigate whether she misrepresented her residency on two mortgages—an escalation of the administration’s pressure campaign on the central bank.
If Cook were to step down, it would give Trump another seat to fill on the Fed’s board of governors. That could be enough to create a Trump-appointed majority on the board if Powell steps down when his chairmanship ends next May.
The Federal Open Market Committee, which sets interest rate policy, is made up of the seven Fed governors, the president of the New York Fed, and four out of eleven other regional Fed banks. The regional presidents rotate onto the committee for one-year terms.
Trump said Cook “must resign now,” citing Pulte’s allegations. Pulte, in social-media posts, said the claims give Trump “cause to fire” her.
In an Aug. 15 letter to Bondi and Justice Department official Ed Martin, Pulte said public records suggest Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
The referral centers on two 2021 mortgages. Records show Cook took out a $203,000, 15-year loan on a home in Ann Arbor, Mich., in June 2021 with a clause requiring her to use it as a primary residence for at least a year. Two weeks later, she obtained a separate $540,000, 30-year mortgage on a property in Georgia with the same requirement. Pulte also cited what appeared to be a 2022 rental listing for the Georgia home and urged investigators to examine whether she treated it as an investment.
A resignation would give Trump another seat to fill on the seven-member Fed board, potentially lifting the number of Republican appointees to four. The president has already nominated White House economic adviser Stephen Miran to fill a seat left vacant this month after the early resignation of a Biden appointee. If confirmed, Miran would serve until January, when Trump could reappoint him to a new 14-year term or select another candidate.
Fed Chair Jerome Powell’s term as chairman ends in May 2026, while his term as governor runs until January 2028. Only once—during the Truman administration—has a chair stayed on the board after stepping down from the top role. If Powell follows precedent, Trump could replace him with an outsider; if not, the choice would likely come from among the sitting governors, including Trump’s own appointees.
Currently, two Trump-appointed governors—Vice Chair Michelle Bowman and Christopher Waller—sit on the board. Miran would be a third. Potential outside candidates discussed include former Fed governor Kevin Warsh and Trump economic adviser Kevin Hassett.
Cook, who joined the Fed in 2022 as its first Black female governor and later secured a term through 2038, has raised concerns that Trump’s trade policies could reignite inflation. At the same time, she has noted signs of labor-market weakness, leaving open the possibility she could support rate cuts later this year.
Cook has not commented on the allegations or said whether she will step down.
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