"Trump said in a letter posted on his Truth Social platform that he is firing Cook because of allegations that she committed mortgage fraud. Bill Pulte, a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, made the accusations last week. Pulte alleged that Cook had claimed two primary residences -- in Ann Arbor, Michigan and Atlanta -- in 2021 to get better mortgage terms. Mortgage rates are often higher on second homes or those purchased to rent."
"The announcement came days after Cook said she wouldn't leave her post despite Trump previously calling for her to resign. The Fed's board has seven members, meaning Trump's move could have deep economic and political ramifications. Trump said in announcing the move that he had the constitutional authority to remove Cook, but doing so will raise questions about control of the Fed as an independent entity."
President Donald Trump dismissed Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud made by appointee Bill Pulte. Pulte alleged Cook claimed two primary residences in 2021 to obtain better mortgage terms, noting higher rates on second homes or rental properties. Cook said she would not leave her post despite prior calls for her resignation. The Fed's seven-member board could face significant economic and political consequences from the removal. Legal challenges are likely, and Cook would need to pursue the case herself while potentially remaining in her seat. The move could allow appointment of a rate-cutting ally.
Read at ABC7 Chicago
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