{"id":122193,"date":"2025-08-31T04:30:08","date_gmt":"2025-08-31T04:30:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/122193\/"},"modified":"2025-08-31T04:30:08","modified_gmt":"2025-08-31T04:30:08","slug":"lisa-cook-standing-up-for-the-federal-reserve-is-a-ploy-to-turn-a-blind-eye-from-her-mortgage-scandal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/122193\/","title":{"rendered":"Lisa Cook standing up for the Federal Reserve is a ploy to turn a blind eye from her mortgage scandal"},"content":{"rendered":"

Fed Governor Lisa Cook<\/a> is standing up to Donald Trump<\/a>, suing to keep her job because she says the president is trumping up a scandal and she\u2019s fighting for Fed independence.<\/p>\n

Trump has called for Cook\u2019s head for allegedly committing mortgage fraud by signing documents that she had two primary residences. <\/p>\n

We should let the courts decide that one.<\/p>\n

But Cook\u2019s notion that she\u2019s standing up for the sanctity of the Fed should be taken with a grain of salt.<\/p>\n

The Fed has long been distracted by side hustles to its \u201cdual mandate\u201d of price stability within the context of maximum employment. It\u2019s far from an apolitical agency.<\/p>\n

Even more, Cook\u2019s own appointment by Joe Biden<\/a> in 2022 is an example of how politics, particularly of the left-wing variety, has been infused into the Fed\u2019s plumbing. <\/p>\n

\t\t\tMore From\t\t\t\t\t\t\tCharles Gasparino<\/p>\n

In getting rid of Cook, you can make the case that Trump \u2014 in his own messy way \u2014 is righting the ship.<\/p>\n

The markets may be signaling this \u2014 despite media talking heads and those of some Fed watchers exploding over Trump\u2019s latest alleged apostasy. <\/p>\n

The establishment commentariat is arguing that not being able to fire Fed Chair Jerome Powell<\/a> or even Cook except for some on-the-job crime, aka cause \u2014 is why people keep buying our debt.<\/p>\n

The nation\u2019s central bank created by Congress to manage the money supply doesn\u2019t report to the president. <\/p>\n

It\u2019s not subject to his political whims to juice economic growth at the expense of \u201cKing Dollar.\u201d<\/p>\n

OK, all good points. <\/p>\n

But stocks and bond yields have barely budged. <\/p>\n

The stated reasons in a recent Wall Street Journal piece: Traders believe Trump will appoint seasoned pros to fill the jobs of both Cook and his main Fed nemesis, Powell.<\/p>\n

Big investors unfazed<\/p>\n

Yes, but my sources provide a more prescient analysis of the market\u2019s insouciance: Trump is merely putting his MAGA stamp on the independence charade.<\/p>\n

Many big investors are unfazed by Trump\u2019s power grab because for years the Fed has been straying from its mandate \u2014 constantly intervening in the economy by playing with the money supply when it isn\u2019t needed and most recently becoming woke. <\/p>\n

Lisa Cook\u2019s nomination in 2022, subsequent confirmation by the then Democrat-controlled and woke-obsessed Senate is part of the proof.<\/p>\n<\/p>\n

Don\u2019t believe me? <\/p>\n

Here\u2019s what Larry Summers<\/a>, Bill Clinton\u2019s former treasury secretary, former Harvard president and one of the most important economic minds on monetary policy said in 2021 about the Fed\u2019s mission-creep:<\/p>\n

\u201cWe have a generation of central bankers who are defining themselves by their \u2018wokeness.\u2019 They\u2019re defining themselves by how socially concerned they are. They\u2019re defining themselves how concerned they are about the environment .\u2009.\u2009. business ethics.\u201d<\/p>\n

In 2022, the Fed developed a \u201cDiversity, Equity, and Inclusion Strategic Plan\u201d to reflect the Federal Reserve Board\u2019s \u201cstrategic initiative on diversity, equity, and inclusion, which is a shared responsibility of all Board employees.\u201d<\/p>\n

Now tell me exactly how DEI, which the Supreme Court says is discriminatory and common sense tells you erodes the nation\u2019s meritocracy, helps the Fed figure out if it\u2019s stoking inflation as it did just a few years ago during Joe Biden\u2019s reign of error?<\/p>\n

Or maybe I should be directing that question to Lisa Cook. <\/p>\n

Her lawyer argued Friday before a federal judge that her firing by Trump is \u201cunprecedented and illegal\u201d in that it exceeds the president\u2019s authority over an independent, nonpolitical agency.<\/p>\n

Go back a few years to her messy confirmation battle and you will see how Cook is anything but apolitical. <\/p>\n

Yes, she has a Ph.D. in econ, from Berkeley no less, and was a longtime academic. <\/p>\n

She is the first African-American woman to serve as a Fed governor, which should be celebrated.<\/p>\n

\t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n

\n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n

But during the hearings we discovered that her areas of interest in economics, based on her publishing record, are dominated by stuff like how lynchings hindered the economic growth of black Americans.<\/p>\n

There is a place for such research at the university \u2014 though you gotta ask yourself why we need an economist to explain something so fundamentally obvious. <\/p>\n

Look into Cook\u2019s r\u00e9sum\u00e9 and you see this is an economist who seems more obsessed with being a social-justice warrior than weighing the vicissitudes of M2 and how it impacts price stability.<\/p>\n

Presumed innocent<\/p>\n

Again, I\u2019m giving Cook the presumption of innocence on the mortgage inquiry. <\/p>\n

For the record, I hate the lack of due process she received. <\/p>\n

Instead of a simple referral to the DOJ to determine probable cause \u2014 cause is what Trump needs to boot her from the post \u2014 Bill Pulte, the head of the Federal Housing Finance Agency, has been announcing criminal referrals on the mortgage charges via social media.<\/p>\n

Music to the ears of his social-media-obsessed boss, who announced Cook\u2019s firing on Truth Social.<\/p>\n

To date, Cool hasn\u2019t denied the central charges that she purposely stated two primary residences to get a lower mortgage rate. <\/p>\n

(Her lawyer has suggested she possibly erred.)<\/p>\n

I also wonder if she would \u00adaccord the same due process to someone who encroached on her woke-obsessed boundaries. <\/p>\n

Good evidence says probably not. <\/p>\n

Consider what she did in 2020, during the insane Summer of Love when Black Lives Matter riots spread across the country, demanding that the police be defunded.<\/p>\n

A fellow academic at the University of Chicago, Harald Uhlig, also the editor at the influential Journal of Political Economy, criticized BLM and defunding. <\/p>\n

She joined the online assault to get him fired. <\/p>\n

(He was placed on leave by the publication and reinstated.) <\/p>\n

Her rationale: \u201cFree speech should have its limits,\u201d adding that it shouldn\u2019t be used to \u201cspread \u00adhatred and violate the dignity of other people.\u201d<\/p>\n

Now do you really want someone like that helping run the \u00adnation\u2019s central bank?<\/p>\n

Maybe that\u2019s why the markets don\u2019t care about Trump\u2019s power play.<\/p>\n","protected":false},"excerpt":{"rendered":"Fed Governor Lisa Cook is standing up to Donald Trump, suing to keep her job because she says…\n","protected":false},"author":2,"featured_media":122194,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,1340,8854,12,2800,2938,3319,43052,15304,918],"class_list":{"0":"post-122193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-congress","10":"tag-dei","11":"tag-donald-trump","12":"tag-federal-reserve","13":"tag-jerome-powell","14":"tag-joe-biden","15":"tag-larry-summers","16":"tag-supreme-court","17":"tag-wall-street"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/122193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=122193"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/122193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/122194"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=122193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=122193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=122193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}