Treasury Secretary Scott Bessent said in an interview with Reuters on Monday that Fed Governor Lisa Cook should step down if the mortgage fraud allegations leveled against her by President Trump are true. When asked if Trump was overstepping his boundaries by trying to fire Cook, Bessent replied, “Well, or is it you’re having to do the Fed’s job for ’em?”
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Bessent also stressed that the Fed should remain independent and free of political bias in order to do its job effectively, although the central bank has “made a lot of mistakes.” That’s likely a reference to the Fed holding the federal funds rate steady this year.
Cook Fights to Keep Her Position
Last week, Cook filed a lawsuit against Trump, arguing that he has no legal grounds or cause to fire her. Furthermore, the lawsuit accused Trump of violating the Federal Reserve Act.
Trump attempted to fire Cook after Federal Housing Finance Agency (FHFA) Director Bill Pulte alleged that she named two separate properties as her principal residence, unfairly receiving lower mortgage rates in the process.
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