Justice Department Investigates Federal Reserve Governor Lisa Cook Mortgage Fraud Claims Michigan Georgia

The U.S. Department of Justice has launched a criminal investigation into Federal Reserve Governor Lisa Cook following allegations of mortgage fraud related to properties she purchased in 2021. The probe, initiated after a criminal referral from Federal Housing Finance Agency Director Bill Pulte, focuses on Cook's claims of two primary residences to secure favorable mortgage terms, which typically differ for second homes. Cook, appointed by President Joe Biden and the first Black woman on the Fed's board, was recently removed by President Donald Trump, who cited these allegations as justification. Cook has contested her firing, filing a lawsuit to remain in office and arguing that Trump's move is an attempt to politicize the Federal Reserve. The investigation, involving subpoenas and grand jury proceedings, is overseen by the Justice Department's Weaponization Working Group and adds pressure amid ongoing debates over Federal Reserve independence and monetary policy control. Critics of the administration view the probe as politically motivated, while Trump has expressed intentions to gain a Fed majority to influence economic policies, including interest rate reductions.