The Cook Case: Echoes of the Trump Scandal
US President Donald Trump, who is campaigning for a second term, announced the firing of Federal Reserve Board member Lisa Cook, citing alleged mortgage fraud. This move, which has not been proven in court, immediately sparked debate about the limits of presidential authority over the independent monetary agency and added to the uncertainty surrounding the Fed.
Interestingly, the allegations against Cook mirror Trump's own civil case in New York in 2004. At that time, Trump was accused of inflating his net worth to obtain more favorable bank lending rates. A New York appeals panel last week rejected the judge's $500 million fine, questioning the manner in which the case was conducted, but left the verdict in place to allow the appeal process to proceed. A panel member said there were losses, but not "massive losses" that warranted such a high fine.
However, Cook's case is not identical, and the scale of her properties is much smaller than Trump's. In his dismissal letter, Trump emphasized the criminal referral to the Justice Department and detailed Cook's mortgage application documents, suggesting fraudulent intent. If the allegations are true, the case could potentially lead to criminal charges.
Cook has confirmed he will not resign and, through his lawyer, has expressed his readiness to pursue legal action. A White House official—who declined to be named—said Trump aides view this situation differently from the Trump case, as Cook sits on a board that helps set interest rates. From the government's perspective, the mortgage fraud allegations are considered relevant to his work at the Fed.
In politics, Trump has recently frequently used the issue of "mortgage fraud" as ammunition, including against longtime opponents like Senator Adam Schiff. This development not only exacerbates political tensions but also has the potential to drag the Fed into the midst of controversy—opening a new chapter in the tug-of-war between monetary policy independence and executive power dynamics.
Source: Newsmaker.id
