Lisa Cook, governor of the US Federal Reserve, during the Federal Reserve Board open meeting in Washington, DC, US, on Wednesday, June 25, 2025. Al Drago | Bloomberg | Getty ImagesCurrent and former Federal Reserve officials struck a common note when asked about Lisa Cook’s situation: It’s imperative the central bank’s independence is preserved. Cook, a Fed governor nominated in 2022 by then-President Joe Biden, has faced attacks over accusations of mortgage fraud from Federal Housing Finance Agency Director Bill Pulte. Justice Department attorney Ed Martin also urged Chair Jerome Powell to fire Cook from her post and confirmed a criminal investigation will take place. The central bank official rejected the idea of resignation Wednesday, saying in a statement she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”Cleveland Fed President Beth Hammack told CNBC on Friday that she stood by Cook, noting: “I know Lisa Cook to be an outstanding economist and a person of high integrity, and I think it’s critically important that the Fed maintains its independence on monetary policy so we can ensure great outcomes for the American public.”The latest developments have fanned concerns on Wall Street surrounding the Fed’s independence. Trump has notably been a vocal critic of Powell, nicknaming him “too late” with regards to the timing of modifying interest rates and accusing him of being “political.”Although Trump has said that it’s “highly unlikely” he would fire Powell before his term as chair is up in May 2026, the president has already started considering several candidates to succeed him and just last week threatened to allow a “major lawsuit” against Powell to proceed while pushing for lower rates yet again.The Fed, which has maintained a strictly data-dependent stance, has kept rates steady since December.Trump also pressed Cook to resign this week in the wake of the accusations. …
