The Fed has been scrutinized for years. But this could be the straw that breaks its back.
And the Federal Reserve is on lockdown after the DOJ launched a massive investigation.
Justice Department Pursues Accountability in Cook Probe
The U.S. Justice Department, under Attorney General Pam Bondi, has launched a criminal investigation into Federal Reserve Governor Lisa Cook for alleged mortgage fraud, issuing grand jury subpoenas in Georgia and Michigan.
The probe, prompted by a criminal referral from Federal Housing Finance Agency Director Bill Pulte, a Trump appointee, focuses on whether Cook misrepresented multiple properties as her primary residence to secure lower mortgage interest rates before joining the Fed in 2022.
A source familiar with the matter told The Post that a grand jury in Atlanta is actively examining Cook, with an indictment considered likely.
Trump’s Decisive Action on Fed Integrity
President Trump moved to remove Cook from her Federal Reserve post last week, citing her “deceitful and criminal conduct in a financial matter” as grounds for termination.
The allegations, detailed by Pulte, claim Cook falsely listed properties in Michigan and Georgia as primary residences in 2021, potentially violating federal law.
DOJ lawyer Yaakov Roth, defending Trump’s action, argued in court that intentional misstatements constitute criminal conduct, and even negligent errors render Cook unfit for her role, providing sufficient cause for her dismissal.
Roth dismissed Cook’s claim that prior disclosures during her Senate confirmation negate the issue, emphasizing that the gravity of the allegations justifies the administration’s response.
Cook’s Defense Faces DOJ Scrutiny
Cook, who owns properties in Michigan, Georgia, and Massachusetts, filed a lawsuit to block her termination, arguing that Trump lacks authority to fire her and that any inconsistencies in her mortgage applications were a “clerical error.”
Her attorney, Abbe Lowell, claimed during a Friday hearing before D.C. District Judge Jia Cobb that Cook is being targeted as part of Trump’s push to influence Federal Reserve interest rate policies.
However, the Justice Department, led by special assistant U.S. attorney Ed Martin and supported by U.S. Attorneys’ offices in Georgia and Michigan, is rigorously pursuing the investigation.
Martin’s role, appointed by Bondi, focuses on mortgage fraud by public officials, ensuring a thorough examination of Cook’s actions.
