The US Justice Department has launched a criminal investigation into Federal Reserve governor Lisa Cook over allegations of mortgage fraud. The inquiry comes as Cook continues her legal battle against President Donald Trump, who attempted to fire her from the Fed board earlier this year.
Investigators are examining claims that Cook listed more than one property as her primary residence to obtain favorable mortgage rates. Cook has denied wrongdoing, calling the allegations “unsubstantiated” and suggesting that any discrepancies may have resulted from a clerical error.
Cook, who was appointed in 2022 to a 14-year term, has refused to step down, saying she will not be “bullied” into leaving her post. Her lawsuit argues that Trump’s attempt to remove her was unconstitutional and a direct threat to the independence of the Federal Reserve. A federal judge is fast-tracking the case, which is expected to ultimately reach the Supreme Court.
The investigation into Cook comes amid a broader pattern of probes into Democratic officials accused of mortgage irregularities, fueling debate over whether the inquiries represent politically motivated efforts to weaken opponents.
