The Department of Justice has launched an investigation into Federal Reserve Governor Lisa Cook following allegations of mortgage fraud. The probe was initiated after Bill Pulte, Director of the Federal Housing Finance Agency, posted tweets containing alleged evidence suggesting Cook had not been residing at her Ann Arbor, Michigan residence.
Cook’s legal team has responded by filing a lawsuit against President Trump over his attempts to remove her from office, maintaining that she “never committed mortgage fraud” and asserting that any
discrepancies in her mortgage documentation were previously addressed during her 2022 confirmation process. The lawsuit also names other Board members, including Chair Powell, though they are only included as potential executors of Trump’s attempted termination.
The political implications of this investigation are significant. Currently, Trump has support from two Governors, Waller and Bowman, who appear willing to advocate for rate cuts in exchange for consideration as potential Fed Chair candidates. Stephen Miran is positioned to replace the recently departed Governor Kugler. With Cook’s current position, Trump supporters remain in a 3-4 minority. However, if Trump successfully replaces Cook and secures a sympathetic Fed Chair to succeed Powell, he could achieve a 5-2 majority by 2026.
Miran’s confirmation hearing before the Senate Banking Committee has already generated controversy. While Senator Moreno noted positively that Miran had “never lied on a mortgage application,” Senator Warren’s questioning revealed potential concerns about his
independence. When asked about the 2020 election outcome, Miran avoided direct confirmation of Trump’s loss, stating only that Congress had confirmed Biden’s victory.
Questions have also emerged regarding Miran’s dual role as Chairman of the Council of Economic Advisers (CEA) and his Fed nomination. Though Miran has agreed to take unpaid leave from the CEA during the remainder of Kugler’s term, Democratic senators have expressed concerns about potential political influence on his decision-making.
Ironically, Miran himself co-authored a paper in March 2024 advocating for restrictions on movement between the executive branch and the Federal Reserve. The paper criticized Chicago Fed President Austan Goolsbee, referring to him indirectly as a “Biden campaign surrogate” and suggesting that transitioning between political and non-political roles could compromise policy decisions.
In international developments, the Coalition of the Willing Summit saw 26 nations agree to support Ukraine, with French President Macron indicating potential troop deployment if necessary. Ukrainian President Zelenskiy reported having a “long and detailed conversation” with Trump, suggesting continued U.S. support through sanctions and tariffs, while praising NATO’s Prioritized Ukraine Requirements List initiative for American weapons supply.
Economic indicators showed weakness in U.S. employment, with ADP reporting only 54,000 new payrolls, marking the fifth sub-100,000 reading this year. ISM services employment data also declined to 46.5, increasing speculation about a potential Fed rate cut in September. Despite falling yields, the U.S. dollar maintained its position as the strongest G10 currency. Regional data showed contracting investment in Mexico and a slight improvement in Canada’s trade deficit, though it remained significant at -C$4.94 billion.