The US Justice Department has opened a criminal investigation into mortgage fraud allegations against Federal Reserve Governor Lisa Cook. The probe comes as Cook simultaneously fights a legal battle against Donald Trump over his attempt to fire her from her position.
Justice Department lawyers have issued subpoenas as part of the investigation, according to the Wall Street Journal. Cook has refused to accept Trump's firing attempt, creating an unprecedented situation where a Fed governor faces both criminal investigation and a political removal effort.
Dual legal challenges
Cook's lawsuit against the Trump administration challenges the president's authority to remove Federal Reserve governors before their terms expire. Federal Reserve governors typically serve 14-year terms and are intended to operate independently from political pressure.
The timing of the criminal investigation alongside Cook's legal fight against Trump raises questions about the intersection of the two proceedings. Cook continues to serve in her role while both legal matters proceed through the courts.
Investigation leadership
Daily Mail reports that Pam Bondi is specifically leading the criminal probe against Cook. The investigation focuses on mortgage fraud claims that have not been detailed publicly by the Justice Department.
The dual legal challenges facing Cook highlight broader tensions over Federal Reserve independence and governance. The outcome of both proceedings could set important precedents for the central bank's autonomy from political interference.
Sources used: "The Guardian", "Independent", "Daily Mail", "Wall Street Journal" Note: This article has been edited with the help of Artificial Intelligence.
