The United States Department of Justice has called for Federal Reserve Governor Lisa Cook to step down from the central bank after commencing an investigation into the allegations brought against her by President Donald Trump and his allies.
In a letter to Fed chair Jerome Powell, senior justice department official Ed Martin said the allegations made by the federal housing agency this week against Cook required “further examination".
He also suggested Cook be immediately dismissed from her position on the central bank’s board.
“At this time, I encourage you to remove Ms Cook from your board,” wrote Ed Martin, a Justice Department official appointed by President Donald Trump in the letter seen by the Financial Times.
“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.”
Despite Martin’s demand, the Fed chair has no authority under the Federal Reserve Act to remove one of the board’s governors.
These aren’t the first allegations that have been brought against Cook, who was an appointee of Trump’s predecessor, Joe Biden.
Earlier this week close ally of Trump and the head of the U.S. Federal Housing and Finance took to X to accuse Cook of “potentially committing mortgage fraud”.
Trump jumped on these allegations, calling for Cook to resign.
In response, Cook said she would not be “bullied” into stepping down.
This follows a string of attacks from Trump on the central bank, as he has consistently criticised Powell, called for borrowing costs to be slashed and strongly denounced a US$2.5 billion (A$43.89 billion) renovation of its Washington headquarters.
