^{Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City’s 2025 Jackson Hole economic symposium, “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy” in Jackson Hole, Wyoming, U.S., August 23, 2025. | Jim Urquhart | Reuters}

The political and financial storm surrounding the Federal Reserve deepened this week as Federal Housing Finance Agency (FHFA) Director Bill Pulte, a Trump appointee, announced he had submitted a second criminal referral to the Department of Justice against Federal Reserve Board Governor Lisa Cook. The move adds further pressure on Cook, who earlier filed a lawsuit against President Donald Trump to block his attempt to remove her from the Fed.

Allegations Over Real Estate and Ethics Disclosures

Pulte’s latest referral focuses on a Cambridge, Massachusetts condominium owned by Cook. He claims she misrepresented the property’s status in both her mortgage application and government ethics filings. According to Pulte, Cook initially labeled the condo as a “second home” in a 15-year mortgage signed in April 2021. However, only eight months later, in December 2021, she identified the same property as an investment/rental property in federal ethics disclosures.

From 2022 through 2025, Cook reportedly continued to list the condo as an investment property, raising concerns that she may have secured a lower mortgage rate and reduced down payment by misclassifying it as a second home—an option typically unavailable for rental properties due to higher lending risks.

Broader Pattern of Alleged Misrepresentations

Pulte also alleges Cook made similar misstatements about two other properties:

• An Atlanta property, which he claims was rented out despite Cook listing it as her residence in disclosure forms.
• An Ann Arbor, Michigan property, which she reported as her personal residence in 2025, though evidence suggests it was also being used as a rental property.

These allegations follow Pulte’s first criminal referral, which accused Cook of making false claims on mortgage applications for her homes in Michigan and Georgia. That referral led the DOJ to launch an investigation.

Trump’s Push to Fire Cook and Legal Countermoves

Earlier this week, Trump cited Pulte’s first referral when notifying Cook that he intended to fire her from the Federal Reserve Board. Cook responded by filing a lawsuit in Washington, D.C., asking a federal judge to block what would be an unprecedented presidential dismissal of a sitting Fed governor.

Legal experts note that the new referral appears strategically timed to strengthen Trump’s case by providing additional allegations that span both before and during Cook’s tenure at the Fed. Pulte himself underscored the escalation, posting on X: “3 strikes and you’re out.”

Political Context and Pressure on the Fed

Pulte has become one of Trump’s most vocal allies in his fight with the central bank. The president has for months demanded that Fed Chairman Jerome Powell cut interest rates, but without success. Frustration with the Fed’s resistance has now evolved into direct challenges against its leadership, first with Powell and now with Cook.

The controversy comes at a time when financial markets are watching the Fed closely for policy shifts, as interest rates remain a dominant factor for both corporate borrowing and consumer debt. The political interference in the Fed’s independence could further unsettle investor confidence, adding to economic uncertainty.

What Comes Next

The Department of Justice has not yet issued a public response to Pulte’s second referral. Meanwhile, Cook’s legal team is preparing for a high-stakes courtroom battle to preserve her seat at the central bank. If the court sides with Trump, it would set a precedent for presidential authority over the Federal Reserve, potentially altering the balance between politics and monetary policy in the United States.

This case now stands at the intersection of finance, law, and politics, with the outcome poised to shape not only the future of Lisa Cook’s career but also the broader independence of the Federal Reserve.

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