Federal Reserve Tensions: Probe into Governor Lisa Cook Unfolds Amid Political Climate

The U.S. Justice Department is investigating Federal Reserve Governor Lisa Cook, urging her removal amid allegations of mortgage fraud. This probe is part of a broader attempt to influence the Fed by President Trump. Cook, the first Black woman governor, faces accusations from U.S. Federal Housing Finance Agency Director William Pulte.

The U.S. Justice Department has initiated an investigation into Federal Reserve Governor Lisa Cook concerning allegations related to mortgage fraud, according to Bloomberg News. A senior official has encouraged Federal Reserve Chair Jerome Powell to remove Cook from her position immediately.

Ed Martin, who has previously investigated public figures like Senator Adam Schiff and New York Attorney General Letitia James, informed Powell of the investigation's necessity. Despite the push for her removal, Cook has stated she will not succumb to these pressures and is committed to addressing any legitimate inquiries about her financial history.

The investigation and the call for Cook's removal reflect President Trump's broader strategy to exert greater influence over the Federal Reserve. Meanwhile, international central bankers are convening at the Jackson Hole symposium, where economic outlooks and interest rate directions are under discussion.

(With inputs from agencies.)