President Donald Trump's Justice Department is using the information it dug up on Federal Reserve Governor Lisa Cook to launch a formal investigation, and subpoenas have been issued, the Wall Street Journal reported Thursday.
It comes after the Trump-appointed director of the Federal Housing Finance Agency, Bill Pulte, dug up information on Cook's mortgages, showing she claimed two properties as a primary residence. Trump and Pulte say it's "mortgage fraud," but Cook's lawyer says otherwise.
Attorney Abbe Lowell says that when Cook was being considered for the post, the information provided in 2022 already stated that both properties were listed, and the U.S. Senate approved her. One property is in her home state of Michigan, while another is in Georgia.
The matter isn't a secret, and she "did not ever commit mortgage fraud," Lowell wrote in a statement, according to CNBC.
Cook says that Trump has “concocted” the so-called scandal and is using the information to justify her firing "for cause," so he can appoint another person to the board of Governors.
Trump's ultimate goal is to force Federal Reserve Chairman Jerome Powell to lower interest rates. Bad economic numbers might actually result in Powell reducing the interest rate, however, the AP reported at the end of August.
“We’ll have a majority very shortly,” Trump claimed, speaking to reporters last month.
At least two top Republicans told the press on Wednesday that they have no intention of holding a hearing for another appointee when the claims against Cook haven't been adjudicated yet.