Attorney General Pam Bondi’s Justice Department issued subpoenas Thursday targeting Federal Reserve Governor Lisa Cook as part of a criminal investigation into allegations of mortgage fraud.
The probe centers on claims that Cook submitted false information on mortgage applications for properties in Michigan and Georgia. Officials confirmed that grand juries are being used in the inquiry.
Trump’s Move to Remove Cook
The investigation comes as Cook battles President Donald Trump in court over his decision to fire her from the Fed. Trump cited allegations from Federal Housing Finance Director Bill Pulte, who accused Cook of lying on applications to secure lower interest rates.
The president argued that these accusations gave him legal grounds to remove Cook, pointing to the Federal Reserve Act, which allows governors to be dismissed “for cause.”
“We’ll have a majority very shortly,” Trump said last week. “Once we have a majority, housing is going to swing, and it’s going to be great. People are paying too high an interest rate. That’s the only problem with us. We have to get the rates down a little bit.”