Andrew here. We dive deep into a story consuming Wall Street and Washington: accusations from President Trump that a Fed governor claimed two houses as primary residences years ago on mortgage applications. The claim comes as his administration pressures the central bank to lower interest rates. Lying on a mortgage application is a crime, but critics question if Trump is using “lawfare” to change policy — a practice he vowed to end. We go a lot deeper below.
The big questions: How did this accusation emerge? Did someone connected to Trump decide to look into Fed board members’ private mortgage filings? If it came from a tip, from where? Does the origin matter if the governor committed an illegal or questionable act? Tell us what you think.
Lawfare at the Fed
President Trump keeps finding new ways to attack the Fed’s independence.
His latest effort to go after a voting member of the central bank’s already divided rate-setting committee may be a legal long shot, but it could already be damaging a longtime cornerstone of U.S. fiscal policy.
A recap: Trump yesterday took aim at Lisa Cook, demanding that the Biden-appointed Fed governor “resign, now!!!” He cited unconfirmed accusations by Bill Pulte, his firebrand director of the Federal Housing Finance Agency, that Cook had committed mortgage fraud by declaring to lenders in 2021 that two houses she owned were her primary residences. She listed one for rent in 2022, but didn’t declare any rental income on ethics filings at the time, according to an inquiry by the agency.
(The Philadelphia Fed found thousands of potentially similar cases in a 2023 review. Prosecution of the matter is rare, but high-profile political figures have faced similar accusations.)
Here’s more on Pulte, who has leveled attacks on Jay Powell, the Fed chair, as well as Democrats who have publicly opposed Trump.
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