Billionaire hedge fund manager Bill Ackman said that Lisa Cook, a Federal Reserve governor under scrutiny, should either directly address allegations of mortgage fraud or resign, warning that the integrity of the central bank requires swift clarity.
"Gov. Cook should immediately put forth the facts to clear her name or she should resign in the best interests of the integrity of our financial system," Ackman wrote in a post on
X Wednesday. "She just needs to answer a simple question: Did she or didn't she sign an affidavit declaring that the subject properties were her primary residences? Yes or no."
Ackman's remarks came as the standoff between Cook and the Trump administration escalated into the courts, with Cook filing a lawsuit Thursday morning to block her removal, arguing that President Donald Trump unlawfully fired her.
The suit asks a judge to declare that Cook remains a sitting member of the Federal Reserve Board, setting the stage for a legal clash with major implications for central bank independence and presidential authority.
The White House defended Trump's move, saying the firing was justified.
"The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions," White House spokesman Kush Desai said in a statement. "The removal of a governor for cause improves the Federal Reserve Board's accountability and credibility for both the markets and American people."
Trump had announced Cook's removal on Monday in a letter posted on social media, citing allegations of mortgage fraud raised by Federal Housing Finance Agency Director Bill Pulte. Pulte claimed Cook designated two separate properties as her principal residence in 2021, an accusation Trump and his allies say undermines her credibility.
Ackman, founder of Pershing Square Capital Management, downplayed legal debates over Trump's firing authority, stressing instead that the central question is factual. "What matters here is whether a Fed governor has committed mortgage fraud or not. It is not a political question. It is a question of fact," he wrote.
Cook's legal challenge now unfolds alongside the administration's broader efforts to scrutinize opponents for similar allegations.
The White House has said investigations are underway into other officials, including New York Attorney General Letitia James and California Sen. Adam Schiff, for possible mortgage fraud.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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