DOJ Launches Criminal Probe Into Fed’s Lisa Cook Ahead of FOMC Meeting
The post DOJ Launches Criminal Probe Into Fed’s Lisa Cook Ahead of FOMC Meeting appeared on BitcoinEthereumNews.com.
The U.S. Department of Justice (DOJ) has opened a criminal investigation into Federal Reserve Governor Lisa Cook, just days before the central bank’s key Federal Open Market Committee (FOMC) meeting. The market is pricing in a 25 basis points (bps), which is likely to happen irrespective of whether Cook votes or not. DOJ Launches Investigation Into Lisa Cook According to a WSJ report, the DOJ’s probe centers on whether the Fed Governor submitted fraudulent information on mortgage applications. This follows a criminal referral from the FHFA Chair, Bill Pulte. The allegations against Cook, the first Black woman appointed to the Federal Reserve Board, have sparked a political and legal firestorm. Investigators are examining whether Cook improperly claimed more than one primary residence to secure favorable mortgage terms, a potential violation of federal fraud statutes. While no charges have been filed, the DOJ’s decision to escalate the inquiry marks a significant development ahead of the Fed’s September policy meeting. Former President Donald Trump, who has previously clashed with the Fed over interest rate policy, seized on the controversy, calling for Cook’s removal. “We need a Federal Reserve that works for the American people, not for corrupt insiders,” Trump said, echoing a broader push by his allies to reshape the central bank’s governing body. The Wall Street Journal reported that Trump is actively seeking to install a majority at the Fed that would align with his preference for rapid rate cuts to spur growth. Trump’s Removal Push and Legal Challenge Intensify The political dimensions of the investigation are becoming clearer, particularly as the legal battle intensifies. As CoinGape reported, Lisa Cook has filed a lawsuit against Trump, arguing that attempts to fire her violate both Federal Reserve independence and statutory protections for board members. Cook’s legal team, led by prominent attorney Abbe…
Filed under: News - @ September 4, 2025 8:30 pm