DOJ Opens Criminal Probe Into Fed Governor Lisa Cook As Trump Pushes For Her Exit

The Justice Department has opened a criminal investigation into Federal Reserve Governor Lisa Cook following public allegations that she committed mortgage fraud. 

Bill Pulte, the head of the Federal Housing Finance Agency, began targeting Cook last month for allegedly claiming two homes as her primary residence, calling for her resignation or firing from the Fed for the purported fraud. 

Ousting Cook would shift the balance of the Fed, giving an ally of President Donald Trump another spot on the Fed Board of Governors and giving the president a majority of the board appointments. 

Pulte has attacked Cook in dozens of posts to his more than 3 million followers on X in recent days. His broadside against the Fed governor began on Aug. 20 with the revelation that he had sent a criminal referral to the Justice Department over the alleged mortgage fraud.

Trump moved to fire Cook on Aug. 26, saying in a letter posted to his social media platform that Americans couldn’t have confidence in the Fed’s integrity with her on the board. 

“In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity,” Trump said. 

Cook refused to leave her post, saying the president’s move lacked any legal basis. She filed a countersuit seeking to block the president’s move, which her attorney characterized as unprecedented and illegal. 

A standoff has ensued, with Republicans continuing to pressure Cook to resign. Pulte scheduled a Thursday morning press conference related to Cook on Wednesday afternoon before abruptly canceling. He posted on X that he was delaying the press conference “out of respect for the process.” 

Out of respect for the process, I will be delaying this press conference. https://t.co/dwxPIe4glO

— Pulte (@pulte) September 3, 2025

The Fed, FHFA and a representative for Cook didn’t respond to a request for comment Thursday morning.

The Department of Justice declined to comment as part of its policy against speaking to the media about “current or prospective litigation including matters that may be an investigation.”

Pulte, whose agency oversees Fannie Mae and Freddie Mac, continued attacking Cook in social media posts Thursday, including reposting images that he says show Cook’s signature on two mortgage applications for properties in Atlanta and Ann Arbor, Michigan. 

The Wall Street Journal was the first to report on the criminal investigation, citing anonymous U.S. officials. Bloomberg confirmed the probe later Thursday morning. 

Trump and his allies have for months been vocal critics of the Fed’s position on interest rates. The president has called on Fed Chairman Jerome Powell to either cut rates or resign, and the White House and Republicans used an expensive renovation of Fed offices as a line of attack against the chairman. 

Powell’s term at the top of the Fed ends in May, but he could stay on as a governor until 2028, although no Fed chair in modern history has stayed at the central bank after their term at the top expired. 

Former Fed Governor Adriana Kugler resigned last month, and Trump has nominated Council of Economic Advisers Chairman Stephen Miran to replace her. Miran has written articles critical of the Fed and mirroring administration talking points, sparking concern among some analysts who fear even the perception that the central bank’s independence is being eroded. 

Miran is on Capitol Hill Thursday for a confirmation hearing. In comments released ahead of his testimony, Miran pledged to uphold the Fed’s independence. 

"The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability," Miran’s prepared statement to the Senate Banking Committee says. 

But in his testimony, Miran told the committee that he would maintain his position in the administration if confirmed as a Fed governor, as the post would be a temporary one. He would take an unpaid leave instead of stepping down, The Washington Post reported.

If he's confirmed, Miran would be the first Fed governor to maintain such ties with the White House, according to the Post.

UPDATE, SEPT. 4, 4:05 P.M. ET: This story has been updated to include a response from the Department of Justice.