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Washington
—
A Justice Department official is set to probe Federal Reserve Governor Lisa Cook after she was accused by a member of President Donald Trump’s administration of committing mortgage fraud, according to a letter sent Thursday to Fed Chair Jerome Powell.
The letter, seen by CNN, was written by Ed Martin, a lawyer at the department who’s tasked with investigating mortgage fraud. Martin said the situation “requires further examination.”
In a letter dated August 15, Federal Housing Finance Agency Director Bill Pulte said that Cook claimed two properties — a home in Michigan and a condo in Atlanta — as her primary home addresses. Pulte, a vocal Trump ally, said in an interview with Bloomberg on Thursday that he looked into Cook based off a tip. He added that his agency has used artificial intelligence software from Palantir to track potential mortgage fraud.
In his letter, Martin also said: “I encourage you to remove Ms. Cook from your Board. Do it today before it is too late!”
“After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her,” he said.
However, only the president has the power to remove a Fed official — and only for cause. In a response to Pulte’s accusations, Cook was defiant, saying in a statement that she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”
She added that she is “gathering the accurate information to answer any legitimate questions and provide the facts.”
The Fed declined CNN’s request for comment.
This is a developing story and will be updated.
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