The Justice Department has initiated a criminal investigation against Fed Governor Lisa Cook and has issued subpoenas to her in order to gather additional information on her property mortgages, according to the Wall Street Journal.
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Last month, President Trump attempted to fire Cook after Federal Housing Finance Agency (FHFA) Director Bill Pulte accused her of mortgage fraud. The alleged fraud centers around Cook listing two separate properties as primary residences and renting out one of the properties. Primary residences generally qualify for lower mortgage rates than investment or rental properties.
Cook Contests Firing amid Concerns Over Fed Independence
Cook isn’t going down without a fight, accusing Trump of firing her without cause in order to “forward his agenda to undermine the independence of the Federal Reserve.” In addition, Cook has requested an emergency order to remain in her role while the case plays out.
If Cook is removed from her position and replaced with a Trump loyalist, the majority of the Fed Board would comprise Trump-appointed officials, which analysts argue could heighten concerns about the Fed’s independence and its ability to make unbiased policy decisions.
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