Washington: Former U.S. President Donald Trump has called for the resignation of Federal Reserve Governor Lisa Cook following allegations of mortgage fraud. The controversy emerged after Bill Pulte, director of the Federal Housing Finance Agency and a Trump ally, urged the Justice Department to investigate two mortgages Cook allegedly misrepresented.

Trump echoed these claims on his social media platform on Wednesday, writing, “Cook must resign, now!!!” Pulte’s letter alleged that Cook, a Biden appointee, falsified bank documents and property records to secure favorable loan terms. According to Pulte, Cook declared two different homes—one in Michigan and another in Georgia—as her primary residence within weeks of each other in 2021, later listing one as a rental property.

The Federal Reserve has not issued an official comment. Cook, who joined the Fed board under President Biden, faces mounting political pressure as the Senate Banking Committee prepares to review Trump’s nominee, Stephen Miran, for a vacant Fed seat. Analysts suggest Cook has little incentive to resign before the upcoming Fed meeting, as stepping down would not halt any legal investigations.

If Cook were to exit, only two Fed governors appointed by a Democratic president would remain, reducing the party’s influence on the seven-member board. This latest development comes as Fed officials gather at the Jackson Hole symposium, where Chair Jerome Powell is expected to hint at possible rate cuts amid labor market concerns. Financial markets currently anticipate an 83% chance of a rate cut in September, signaling high stakes for the Fed’s upcoming decisions.