In recent days, a major political storm has erupted in the United States. President Donald Trump has tried to remove Federal Reserve Board member Lisa Cook from her position.
Loan Controversy Sparks Federal Reserve Clash
His action has drawn attention because of the sharp contrast with his own history of loan-related controversies.
The issue began when Trump accused Cook of making false claims in her mortgage applications. According to a letter posted online, he said Cook signed one form in Michigan declaring it as her primary residence and another form in Georgia two weeks later with the same promise. Trump wrote that it was impossible for her to have intended to keep both commitments.
In his letter, Trump announced that Cook was removed from the Federal Reserve Board “effective immediately.” However, U.S. law says that a president can only remove a Federal Reserve governor “for cause.” Cook responded through her attorney, stating that no valid reason existed for her removal. She added that she would not resign and would continue her work at the central bank, where she had served since 2022.
Trump and sons back new WLFI digital token with ties to stablecoin USD1 and $1.5B campaign
The clash became more intense because of Trump’s own record with loans. In 2022, a New York court found that he had misled lenders for decades, inflating the value of his properties by hundreds of millions of dollars. The judge said the actions were so serious that they “shocked the conscience.” Trump defended himself by saying that no banks lost money, and therefore there was no harm.
He was partially successful earlier this year when a state appeals court removed a $515 million fine that had been placed on him. Still, court documents showed that he once claimed his Trump Tower penthouse was 30,000 square feet when it was in fact about a third of that size. The timing of his accusations against Cook, compared with his own history, led many to describe the situation as a striking example of hypocrisy.
Referrals Against Trump’s Critics
Trump’s push against Cook did not happen in isolation. It is part of a broader pattern where his allies have targeted his critics using mortgage records. A central figure in this effort is Bill Pulte, the head of the Federal Housing Financing Agency (FHFA).
Trump calls for Intel CEO Lip-Bu Tan to resign over alleged China military ties
The FHFA oversees more than 50 million mortgage files. Yet, from this vast pool, Pulte has identified only three criminal referrals. All three involve people who have challenged Trump in the past—New York Attorney General Letitia James, California Senator Adam Schiff, and Federal Reserve Board member Lisa Cook.
The first referral came in April and was directed at Attorney General James, who had earlier filed a large fraud case against Trump. Pulte accused her of stating that a Virginia home, which she purchased with her niece, was her primary residence. He also pointed to an old 2001 application where she allegedly misclassified her Brooklyn row house. The search went as far back as 43 years, even highlighting a 1981 application where she supposedly listed her father as her spouse.
The second referral was filed in May against Senator Schiff. He was accused of listing both a California condo and a Maryland house as primary residences. However, members of Congress often maintain two homes—one in their home state and another near Washington, D.C.—because of the nature of their work.
The third referral, submitted in mid-August, was against Cook. Soon after, Pulte appeared on national television urging her resignation. Trump amplified the call on social media, demanding that Cook step down immediately. When she refused, he issued the letter claiming to remove her.
These referrals have raised questions because of how selective they appear. With millions of mortgage files available, only opponents of Trump have been targeted. Each of the accused has firmly denied any wrongdoing.
Power Struggles and Double Standards
The pattern shows a deeper struggle over power. Trump and his allies have attempted to use official agencies to file complaints against those who have opposed him. At the same time, Trump himself continues to minimize his own financial controversies, which were far larger in scale.
From Sanctions to Surrender: How Trump’s Sanctions on Law Firms Backfired in Federal Court
The referrals made by the FHFA were sent to Ed Martin, who leads the Department of Justice’s “Weaponization Working Group.” This group was originally formed to investigate claims that the Biden administration used the law against its political rivals. Ironically, it is now reviewing cases against critics of Trump.
For Cook, the matter has become a direct challenge to her position. She made clear that she will remain in her role at the Federal Reserve and continue her duties despite Trump’s public letter. Her statement emphasized that the president does not have unlimited authority to remove governors without clear legal cause.
At the same time, Trump’s history looms large over the dispute. His decades of inflated loan valuations, his exaggerated property sizes, and his ongoing legal battles contrast sharply with the technical disputes over mortgage documents that his allies have highlighted. The difference in scale between his own controversies and the accusations against his critics has become the central point of discussion.
The current conflict highlights a clear double standard. On one hand, Trump dismisses his own massive loan issues as harmless. On the other, he pushes for severe consequences for others over disputed or technical mortgage entries. This tension between accusations and past actions has once again placed Trump and his opponents in the soup.