DOJ Urges Fed’s Powell to Remove Cook as Probe Gets Underway

The Justice Department signaled possible 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 from the board in a letter sent Thursday.

Ed Martin, a Justice Department official who has led similar investigations into Senator Adam Schiff of California and New York Attorney General Letitia James, told Federal Reserve Chair Jerome Powell that Cook’s case “requires further examination” in the letter.

“At this time, I encourage you to remove Ms. Cook from your Board,” Martin wrote. “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.”

Powell doesn’t have the authority to fire Cook, a Senate-confirmed presidential appointee. Only the president can remove a Fed governor and only for cause. Bloomberg's Stuart Paul reports.

“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in an emailed statement via a Fed spokesperson. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”

A resignation would create another opening for Trump to fill on the Fed board as the president piles pressure on the central bank to lower rates. Trump has tarnished Fed Chair Jerome Powell as “Too Late” for not slashing rates months ago, and suggested he too should step aside. Trump has also heavily criticized Powell and the Fed over the cost of its ongoing headquarters renovation project

Federal Housing Finance Agency Director Bill Pulte wrote a letter to Attorney General Pam Bondi and Martin on Aug. 15 suggesting that Cook may have committed a criminal offense. The letter alleged that Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”

Cook became the first Black woman to serve on the Fed’s Board of Governors in Washington when she was appointed by President Joe Biden in 2022. Her term expires in 2038.

Martin didn’t immediately respond to a message left for comment. The Federal Reserve declined to comment.

“As we begin any investigation of the conduct like that by Ms. Cook in the referral, I will likely be required for confidentiality purposes to remain silent about our investigations,” Martin wrote in the letter to the Fed chair.

Her departure would give Trump an opportunity to secure a four-person majority on the seven-member board after another Biden appointee, Adriana Kugler, announced on Aug. 1 she would vacate her position early. Kugler’s term was set to expire in January. Two other governors, Christopher Waller and Michelle Bowman, were appointed during Trump’s first term.

During her initial confirmation process, Cook faced intense scrutiny from Republican lawmakers and conservative media outlets who accused her of misrepresenting parts of her resume and tried to use that to sink her nomination. She strongly denied the allegations and was confirmed on a party-line vote in the Senate, with then-Vice President Kamala Harris stepping in to break a 50-50 tie.

As a governor, Cook has held a permanent seat on the Federal Open Market Committee, the group of 12 policymakers that votes on monetary policy decisions. The panel also includes five presidents from the Fed’s 12 regional banks.

Cook has expressed worry over inflation and tariffs this year, but also said in early August that the July jobs report was “concerning” and could indicate a potential turning point for the US economy. The central bank is expected to cu

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