US Department of Justice opens investigation against Lisa Cook, Fed’s director, says Jornal

Those who are Lisa Cook, Fed’s director who decided to face Trump, the United States Department of Justice has opened a criminal investigation on suspicion of mortgage fraud against Lisa Cook, director of the Federal Reserve (Fed, the Central Bank). The information was first released by the newspaper “The Wall Street Journal”. The DOJ also sent subpoenas to large juries in Georgia and Michigan, states where Cook has properties that are under investigation. 📱 Bake the G1 app to see real-time and free news according to WSJ, the investigation will be conducted by Ed Martin, appointed by US Attorney General Pam Bondi as a US special assistant to deal with cases of mortgage fraud involving public authorities. The investigation began after a report of fraud presented in a public letter by Bill Pulte, real estate financing regulator and ally of Trump. Read more Fed says that Lisa Cook and directors can only be removed ‘for just cause’ Lisa Cook’s dismissal by Trump challenges historical Fed independence how can the pressure on Lisa Cook impact the US economy? And from Brazil? Understand the impasse involving Trump and the Fed Director last week, US President Donald Trump used the complaint to announce the resignation of Lisa Cook from Federal Reserve. The decision, unprecedented, is seen as a new climb of the Republican attacks on the independence of the US Central Bank. To justify the removal, Trump says Cook would have committed mortgage fraud by declaring two homes as main for better financing conditions. Fed legislation states that the US president has no direct authority to dismiss members of the board without proof of serious misconduct. The US President then associated this accusation with the just cause necessary to dismiss the director of the Fed. The document was classified as a “criminal reference” and led the institution to request an investigation from the Department of Justice. Peter Conti-Brown, an expert in Fed History from the University of Pennsylvania, recalls that the transactions mentioned by Trump occurred before Cook’s nomination to the Central Bank and had already been disclosed during his sabbath and confirmation in the Senate. Although the law is not explicit, its interpretation is that it refers to conduct during the exercise of the function, not acts prior to the appointment or aspects of personal life without connection with the position. In a statement released through his lawyer, Cook stated that “there is no legal reason” for his resignation and guaranteed that he will not resign. “President Trump claimed to have fired me ‘for just cause’ when there is no fair cause provided for by law, and he has no authority to do so,” the statement says. According to Cook’s lawyer, all legal measures will be adopted to block the dismissal of the Fed leader, classified by him as illegal. “I will not resign. I will continue to fulfill my duties to help the American economy, as I have been doing since 2022.” Dismissal challenges historical independence from the Fed the dismissal of a member of the Council of Fed governors by direct decision of the president is unpublished. The Federal Reserve has been structured to protect the monetary policy from political pressures. Its members have long and staggered mandates, cannot be elected authorities or members of the executive – which guarantees stability and continuity in economic decisions. The Fed also does not depend on the congressional budget and does not submit its decisions to the endorsement of the president or the legislature. This independence ensures that the Central Bank acts with a focus on long -term goals, such as full employment and pricing stability, without assigning electoral or immediate interests. Trump’s attempt to intervene directly on the composition of the Fed Council lights alerts about the politicization of monetary policy. The credibility of the American Central Bank – considered the most powerful in the world – depends precisely on its ability to make technical decisions, free of political interference. Experts point out that such measures can destabilize financial markets, especially at an already delicate moment, marked by the effects of commercial tariffs. Those who are Lisa Cook Economist Lisa Cook will be the first black woman in the summit of Fed Ken Cedeno/Reuters Cook made history in 2022 by becoming the first black woman nominated for a position at the Council of Fed. Economist at Oxford University and a doctor of California, Berkeley, she was a professor of economics and international relations at Michigan State University. He built his career as a researcher, investigating the impacts of discrimination on the American economy and how recessions cause more damage to the poor. The economist speaks five languages ​​- among them the Russian – and specializes in international development, having acted in the recovery of Rwanda after the 1994 genocide. He was nominated for the post by then -Democratic president Joe Biden. With a mandate until 2038, he brought to the Fed a prominent trajectory: he joined President Barack Obama’s Economic Advisory Council and acted in the US Treasury Department.

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