Federal Housing Finance Agency Director Bill Pulte has sent a second criminal referral to the Justice Department accusing Federal Reserve Governor Lisa Cook of mortgage fraud, according to a letter dated Aug. 28. Pulte alleges Cook obtained a US$361,000 mortgage on a Cambridge, Massachusetts condominium in 2021 by declaring it a “second home,” then classified the same property as an investment rental eight months later in government ethics filings, potentially securing more favorable loan terms. The new referral builds on an earlier complaint that Cook misrepresented homes in Ann Arbor, Michigan, and Atlanta, Georgia as primary residences on separate mortgage applications filed weeks apart in 2021. The two referrals have already prompted a DOJ investigation and were cited by President Donald Trump this week in his attempt to dismiss Cook from the Fed board. Cook on Thursday sued Trump in federal court, arguing the president lacks authority to remove a sitting governor without a clear statutory cause. U.S. District Judge Jia Cobb has scheduled an initial hearing for Friday on Cook’s request for a restraining order. The clash intensifies the White House’s broader campaign to secure a voting majority on the Federal Reserve Board as it presses for lower interest rates.

Federal Reserve Governor Lisa Cook sued President Donald Trump in federal court on 28 Aug 2025 to stop his attempt to fire her, calling the move “unprecedented and illegal” and seeking a temporary restraining order that would keep her in office while the case proceeds. US District Judge Jia Cobb scheduled an emergency hearing for Friday. Trump said on 25 Aug that he had dismissed Cook “for cause,” citing unproven allegations that she misstated primary residences on two 2021 mortgage applications. Cook’s complaint, which also names the Federal Reserve Board and Chair Jerome Powell, argues the claims predate her May 2022 Senate confirmation, do not constitute the statutory “for-cause” standard and were raised without due process. If allowed to stand, the dismissal would give Trump a four-to-three majority on the seven-member board and, according to Cook, jeopardise the US central bank’s 112-year tradition of independence. The dollar slipped after the firing announcement and legal analysts expect a protracted fight that could reach the Supreme Court. Cook, the first Black woman to serve as a Fed governor, holds a term that runs until 2038.

White House Press Secretary Karoline Leavitt said the administration will "continue to fight the battle" with Federal Reserve Governor Lisa Cook, signaling the White House’s determination to maintain pressure on the central bank’s leadership. Leavitt’s brief remark, delivered during Thursday’s press briefing, underscores an ongoing rift between the administration and Fed officials, including Chair Jerome Powell, over undisclosed policy differences. She did not elaborate on the substance of the dispute or outline specific steps the White House plans to take.

White House National Economic Council senior adviser Kevin Hassett said on Wednesday that Federal Reserve Governor Lisa Cook should “do the honorable thing” and step aside, either by taking a leave of absence or resigning. Hassett made the remark while speaking with reporters at the White House on 27 Aug. 2025. He did not elaborate on the circumstances prompting his call for Cook to step back.

The Federal Reserve has stated that it will comply with any court decision regarding the ongoing dispute involving Federal Reserve Governor Lisa Cook and former President Donald Trump. The central bank has taken no position on Trump's attempt to remove Cook and has requested a prompt ruling from Judge Cobb. Ahead of the court hearing, the Fed filed documents reiterating that it will abide by the court's ruling and confirmed it will not present arguments during the hearing.

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the filing by Canary Capital to launch a staked Injective (INJ) exchange-traded fund (ETF). The SEC has opened a 21-day public comment period on the proposed ETF, marking a key step in the approval process. Canary Capital previously filed an S-1 registration statement with the SEC, and the Chicago Board Options Exchange (CBOE) has submitted a filing to list the staked INJ ETF. The timeline for the ETF includes SEC approval of the S-1 filing followed by the commencement of trading. Separately, Federal Reserve Governor Lisa Cook may face a lawsuit that could be filed imminently, according to CNBC sources. The lawsuit filing was reportedly completed on August 27. Additionally, legal professionals have commented on the widespread issue of inflating hours in the legal industry following a recent ban on an associate.

Federal Reserve Governor Lisa Cook highlighted emerging financial stress among low- and moderate-income households during her speech at the Seventh Annual Women in Macro Conference in New York. She noted that a sufficiently large income shock could increase default rates, resulting in losses for lenders. Despite these concerns, Cook characterized the overall economic vulnerabilities from household borrowing as moderate. She also mentioned that the Treasury market remained orderly amid April's volatility and that she is closely monitoring the commercial real estate sector. Data from the St. Louis Fed indicates that delinquency rates have risen notably, with the richest 10% of ZIP codes experiencing a 54% increase in delinquencies from 4.8% in Q2 2022 to 7.4% in Q1 2024, while the poorest 10% saw a 41% rise from 14.9% in Q3 2022 to 21% in Q2 2024. Additionally, Canadian mortgage holders are reported to be facing widespread financial strain, and broader statistics suggest that Americans have limited tolerance for economic hardship.