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DOJ Calls for Fed Chair Powell to Fire Top Fed Official Lisa Cook

The DOJ probe into Fed Governor Lisa Cook concerns alleged mortgage fraud involving properties in Michigan and Georgia, prompting calls for her removal amid debates over Fed independence.

  • On Thursday in Jackson Hole, Bloomberg News reported the U.S. Department of Justice opened an investigation into Federal Reserve Governor Lisa Cook, with a senior official urging Chair Jerome Powell to remove her after President Donald Trump called for her resignation.
  • FHFA Director William Pulte wrote that Lisa Cook allegedly falsified documents to claim two properties as primary residences in June and July 2021, urging DOJ scrutiny this past week.
  • Legally, Federal Reserve Chair Jerome Powell cannot dismiss a governor, and Federal Reserve Governor Lisa Cook vowed she will not be bullied into resigning, while Beth Hammack, Cleveland Fed President, praised her integrity.
  • Chairman Powell faces a pivotal choice that will test the Federal Reserve Board and its leadership's independence amid political pressure, with financial markets and the public closely watching.
  • Removing Cook would open a seat President Donald Trump could fill, deepening efforts to shift Fed policy amid criticism over its $2.5 billion headquarters revamp.
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Semafor broke the news in New York, United States on Thursday, August 21, 2025.
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