Overview

• President Donald Trump said on Aug. 22 that he will dismiss Lisa Cook if she does not resign following allegations tied to her past mortgage filings.
• FHFA Director Bill Pulte posted documents alleging Cook claimed two primary residences and said he sent a criminal referral to the Justice Department.
• Cook said the application predates her time at the Fed, that she is gathering records to address questions, and that she will not be pressured to quit.
• Legal scholars note governors can be removed only for cause under the Federal Reserve Act, and no president has ever removed a sitting governor.
• The Justice Department signaled it would review Pulte’s referral, while critics, including Sen. Elizabeth Warren, warn that pressured removals threaten Fed independence and could jolt markets.