Welcome to The Logoff: A key Trump administration attack dog is helping the president go after the Federal Reserve by accusing a Fed board member of mortgage fraud.
What just happened? On Wednesday, Federal Housing Finance Agency director Bill Pulte claimed that Fed governor Lisa Cook had committed mortgage fraud by claiming two different primary residences on loans, and that President Donald Trump had “great cause” to fire Cook. Trump wrote in a social media post that “Cook must resign, now!!!” and is reportedly considering firing her.
As a Fed governor, Cook helps oversee the country's central banking system and set US monetary policy, including interest rates.
What’s the context? Pulte, as my colleague Andrew Prokop has documented, has a long history of using his office to attack Trump’s enemies. He’s accused both Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James of mortgage fraud, and he has long pushed for Fed chair Jerome Powell to resign — including attempting to provide Trump with pretext to fire Powell for cause and drafting a letter to that effect.
Why is Trump going after the Fed? Trump badly wants to bring US monetary policy under his control so he can lower interest rates, and the deliberately independent structure of the Fed is hindering his efforts. But if he forces out Cook, who will otherwise serve until 2038, he could soon have a majority on the Fed’s seven-member board of governors.
Why does this matter? The Fed is independent for a reason. Its decisions move markets and could be used for short-term political gain, but its decision-makers are insulated by design from partisan pressure so they can do what’s right for the long-term health of the economy (Fed governors like Cook serve 14-year terms). A more pliant Fed board that listens to Trump’s demands could quickly become a problem for everyone.
