Lisa Cook did not refute any of the allegations of mortgage fraud in a lawsuit challenging her firing from the Federal Reserve board by President Donald Trump, Federal Housing Finance Agency Director Bill Pulte said Thursday.
Trump announced Monday he was firing Cook, who was appointed by former President Joe Biden in 2022 to fill an empty seat and reappointed in 2023 to serve a 14-year term, after allegations of mortgage fraud were raised by Pulte. Trump invoked his authority under Article II of the Constitution and the Federal Reserve Act of 1913, asserting the allegations constituted sufficient “cause” under the act for her removal.
Cook has been accused of misrepresenting two properties in Michigan and Georgia as her primary residences in 2021 to secure favorable mortgage terms. A lawsuit she filed Thursday challenging her firing maintained the fraud allegations do not meet the standard of “sufficient cause” under the Federal Reserve Act and instead are being used by Trump to stack the Fed board in his favor to get interest rate cuts, CNBC reported.
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