Federal Reserve Governor Lisa Cook provided her first full defense of the mortgage records that led to a dispute with President Donald Trump, according to The Wall Street Journal.
Cook’s attorney told the Journal that any inconsistencies in her loan documents could be easily explained.
The Journal reported that Cook listed a home in Ann Arbor, Michigan, as her primary residence when she took out a $203,000 mortgage in 2021.
It noted that about two weeks later, she took out a $540,000 mortgage on a home in Atlanta, Georgia, also declaring it her primary residence.
The Journal further reported that a condo in Cambridge, Massachusetts, was labeled a second home even though it generated rental income.
Cook’s legal team argued to the Journal that lenders allow some flexibility in how occupancy is described and insisted that no part of the paperwork was fraudulent.
The Journal said Cook maintains that all of the disputed filings happened before her May 2022 confirmation to the Fed Board.
Trump has pointed to these records as reasons to remove Cook “for cause,” as reported by Reuters.
Reuters stated that Trump believes the filings raise valid concerns about honesty and disclosure from someone involved in setting national monetary policy.
The conflict goes back to Cook’s original nomination, which many Republicans aligned with Trump opposed due to her perceived ideological and activist-leaning academic record.
Conservatives argued during her confirmation that Cook often sided with the most dovish members of the Fed and openly supported left-leaning views on inequality.
Trump’s allies have long claimed that Cook’s judgment, beyond just her mortgage filings, warranted a closer examination of her role in the central bank.
Cook told the Journal that the White House and the Senate had access to the same mortgage details during her nomination vetting.
According to Reuters, Trump’s legal team argued that behavior before appointment can still qualify as misconduct serious enough to justify removal from an independent agency.
A federal judge has temporarily prevented Trump from firing Cook while the case is ongoing, Reuters reported.
Legal analysts cited by Reuters mentioned that the issue is likely headed to the Supreme Court.
Trump allies believe this case could become a significant test of presidential authority over independent regulators.
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