Fed governor says she won't be 'bullied' as Trump demands she quit over mortgage claim

A top official at the US Federal Reserve says she will not be "bullied" after President Donald Trump called for her resignation over an allegation of mortgage fraud.

Governor Lisa Cook has been accused of falsifying documents and property records in a bid to get more favourable home loan. She said the allegation stems from an application before she joined the Federal Reserve.

The Trump administration is also conducting mortgage fraud investigations against Senator Adam Schiff and New York Attorney General Letitia James, both political antagonists of the president.

Trump has also been seeking more influence over the US central bank and has repeatedly criticised its decision not to lower interest rates.

In a letter addressed to Attorney General Pam Bondi - and posted on X on Wednesday - housing finance regulator, Bill Pulte, a Trump ally, alleged that Cook had falsified documents for properties in Michigan and Georgia, saying they were her primary residence, potentially amounting to criminal mortgage fraud.

Pulte also posted a photo of signatures, commenting: "Lisa Cook says she will answer all legitimate questions. Let's start with this. Are these your signatures on Mortgages?"

The housing finance regulator called the letter a "criminal referral" and urged the justice department to investigate.

While no investigation has yet been announced, Trump took to his Truth Social media platform on Wednesday to post: "Cook must resign, now!!!"

Cook, who was appointed by Trump's predecessor, Democrat Joe Biden, in 2022, told the BBC in a statement that she learned of the allegations from the media and the matter stemmed from a mortgage loan application made four years ago.

"I have no intention of being bullied to step down from my position because of some questions raised in a tweet," she said.

"I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts."

The Federal Reserve's seven governors decide the bank's monetary policy, lowering and raising a benchmark interest rate and using other measures to address inflation and unemployment.

The justice department declined to comment on the allegations or Trump's comment. The BBC also contacted the White House.

Pulte, who was appointed by Trump in March, has been a vocal critic of Federal Reserve chairman Jerome Powell and has repeatedly echoed Trump's call for the central bank to lower interest rates.

Trump frequently refers to Powell as being "too late", saying interest rates should have already been lowered this year.

Alongside calling for Cook to resign, Trump is seeking to influence the Federal Reserve through other avenues, including discussing possible nominees for the chairmanship once Powell's term ends next year.

Earlier this month, another Federal Reserve Governor, Adriana Kugler, resigned, paving the way for Trump to nominate economic adviser Stephen Miran to the board.

Miran must still be confirmed by the Senate. If Cook resigned, Trump would have another opening to fill.

He has also attacked Powell over the cost of building renovations at the Federal Reserve's headquarters in Washington DC, at times suggesting that cost overruns and potential mismanagement of the project are "sort of" a fireable offence.

Powell is expected to address an economics summit in Jackson Hole, Wyoming, on Friday, where he could give clues about the direction of interest rates in the near-future.

He said earlier this year that the central bank had decided against cutting them after Trump announced his ambitious tariff plans, to see how the new taxes affected businesses and consumers.

The next Federal Reserve meeting will take place in mid-September, when many economists expect it to cut rates.