The Department of Justice plans an investigation into Federal Reserve Governor Lisa Cook and a DOJ official has informed Chair Jerome Powell and encouraged her removal. A DOJ letter from Ed Martin stated that Cook's case requires further examination and urged prompt action. Cook has been accused of mortgage-related misconduct and has stated she will not be bullied into resigning. President Donald Trump publicly called for her resignation based on administration allegations about mortgages in Michigan and Georgia. The Federal Reserve Act does not give a Fed chair authority to remove another Board member. Cook is the first Black woman Fed governor and is serving a 14-year term that began after her second Senate confirmation in 2023. The effort to remove her coincides with administration actions targeting diversity, equity and inclusion and attempts to influence Fed policy on interest rates.
The United States Department of Justice plans to investigate Federal Reserve Governor Lisa Cook, with a top official informing Federal Reserve Chair Jerome Powell of the probe and encouraging him to remove her, Bloomberg News has reported.
At this time, I encourage you to remove Ms Cook from your Board, Martin wrote, according to Bloomberg. Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.
Asked about the report, a Fed spokesperson referred to Cook's statement on Wednesday, when she said she had no intention of being bullied into resigning after President Donald Trump called for her to step down on the basis of allegations made by a member of his administration about mortgages she holds in Michigan and Georgia.
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