bill pulte

WASHINGTON — The Supreme Court on Wednesday put off a decision on whether President Trump can fire Federal Reserve Governor Lisa Cook and said it would hear arguments on the case in January.

The court’s action allows Cook to remain in her position, and it prevents Trump from taking majority control of the historically independent central bank board.

Last month, the president said he fired Cook “for cause,” citing mortgage documents she signed in 2021 confirming that two different properties were her primary residence.

But the flap over her mortgages arose as Trump complained that the Federal Reserve Board, including Cook, had not lowered interest rates to his satisfaction.

“We will have a majority very shortly,” Trump said after he fired Cook.

In September, Trump appointed Stephen Miran, the chair of of his White House Council of Economic Advisers, to serve a temporary term on the seven-member Federal Reserve Board. He joined two other Trump appointees.

Congress wrote the Federal Reserve Act of 1913 intending to give the central bank board some independence from politics and the current president.

Its seven members are appointed by the president and confirmed by the Senate, and they serve staggered terms of 14 years, unless “removed for cause by the president.”

The law does not define what amounts to cause.

President Biden appointed Cook to a temporary term in 2022 and to a full term a year later.

In August, Bill Pulte, Trump’s director of the Federal Housing Finance Agency, alleged that Cook committed mortgage fraud when she took out two housing loans in 2021. One was for $203,000 for a house in Ann Arbor, Mich., and the second was for $540,000 for a condo in Atlanta. In both instances, he said she signed a loan document saying the property would be her primary residence.

Mortgage lenders usually offer a lower interest rate for a borrower’s primary residence.

Cook has not directly refuted the allegation about her mortgage documents, but her attorneys said she told the lender she was seeking the Atlanta condo as a vacation home.

Trump, however, sent Cook a letter on Aug. 25 that said, “You may be removed, at my discretion, for cause,” citing the law and Pulte’s referral. “I have determined that there is sufficient cause to remove you from your position,” he wrote.

Cook refused to step down and filed a suit to challenge the decision. She argued the allegation did not amount to cause under the law, and she had not been given a hearing to contest it.

A federal judge in Washington agreed and blocked her firing, noting that unproven allegation of mortgage fraud occurred before she was appointed to the Federal Reserve.

In a 2-1 vote, the appeals court also refused to uphold her firing.

Trump’s lawyers sent an emergency appeal to the Supreme Court on Sept. 18 arguing Congress gave the president the authority to fire a Fed governor he concludes she is not trustworthy.

“Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,” wrote Trump Solicitor Gen. D. John Sauer.

But the justices refused to act on an emergency appeal and decided they will give the case a full hearing and a written decision.

WASHINGTON — President Trump appealed to the Supreme Court on Thursday seeking to fire Federal Reserve governor Lisa Cook from the independent board that can raise or lower interest rates.

The appeal “involves yet another case of improper judicial interference with the President’s removal authority — here, interference with the President’s authority to remove members of the Federal Reserve Board of Governors for cause,” wrote Solicitor Gen. D. John Sauer.

The appeal is the second this month asking the court to give Trump broad new power over the economy.

The first, to be heard in November, will decide if the president to free to impose large import taxes on products coming into this country.

The new case could determine if he is free to remake the Federal Reserve Board by removing a Democratic appointee who he says may have broken the law.

Trump’s lawyers argue that a Fed governor has no legal right to challenge the president’s decision to fire her.

“Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself—and refuses to explain the apparent misrepresentations,” Trump’s lawyer said.

Trump has chafed at the Federal Reserve board for keeping interest rates high to fight inflation, and he threatened to fire board chairman Jay Powell, even though he appointed him to that post in 2018.

But last month, Trump turned his attention to Cook and said he had cause to fire her.

Congress wrote the Federal Reserve Act of 1913 intending to give the central bank board some independence from politics and the current president.

Its seven members are appointed by the president and confirmed by the Senate, and they serve staggered terms of 14 years, unless “removed for cause by the president.”

The law does not define what amounts to cause.

President Biden appointed Cook in 2023 and she was confirmed to a full term.

In August, however, Bill Pulte, Trump’s director of the Federal Housing Finance Agency, alleged Cook committed mortgage fraud when she took out two housing loans in 2021. One was for $203,000 for a house in Ann Arbor, Mich., and the second was for $540,000 for a condo in Atlanta. In both instances, she signed a loan document saying the property would be her primary residence.

Typically, borrowers obtain a better interest rate for a primary residence. But lawyers say charges of mortgage fraud are extremely rare if the borrower makes the required regular payments on the loan.

About 30 minutes after Pulte posted his allegations, Trump posted on his social media site: “Cook must resign. Now!!!”

Cook has not responded directly to the allegations, but her attorneys pointed to news reports which said she told the lender her Atlanta condo would be a vacation home.

Trump, however, sent Cook a letter on Aug. 25. “You may be removed, at my discretion, for cause,” citing the law and Pulte’s referrral. “I have determined that there is sufficient cause to remove you from your position,” he wrote.

Cook filed a suit to challenge the decision. She argued the allegations did not amount to cause under the law, and she had not been given a hearing to contest the charges.

U.S. District Judge Jia Cobb, a Biden appointee, agreed she made a “strong showing” the firing was illegal and blocked her removal.

She said Congress wrote the “for cause” provision to punish “malfeasance in office,” not conduct that pre-dated her appointment. She also said Cook had been denied “due process of law” because she was not given a hearing.

The U.S. appeals court in Washington, by a 2-1 vote, refused to lift her order on Monday.

Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, said Cook had been denied “even minimal process — that is, notice of the allegation against her and a meaningful opportunity to respond — before she was purportedly removed.”

Judge Gregory Katsas, a Trump appointee, dissented. He said “for cause” removal provision was broader than misconduct in office. It means the president may remove an officer for “some cause relating to” their “ability, fitness, or competence” to hold the office, he said.

And because a government position is not the property of office holders, they do not have a “due process” right to contest their firing, he said.

WASHINGTON — Behind a White House effort to saddle President Trump’s political foes with accusations of mortgage fraud is a 37-year-old home construction executive with a deep partisan past.

Bill Pulte, a Florida native, rose in Trump’s orbit toward the end of his first term. After courting Trump for years on social media and through generous donations, he now runs the Federal Housing Finance Agency — a perch that has allowed him to target prominent figures who have crossed the president.

In the last five months, Pulte has referred three claims of mortgage fraud against Trump’s foes to the Justice Department, leveled against Letitia James, the attorney general of New York; Adam Schiff, the Democratic senator from California; and this week, Lisa Cook, a governor on the board of the Federal Reserve.

Each has denied wrongdoing. Trump announced on Monday night that he was moving to fire Cook.

It is an unusual role for a director of the FHFA, which regulates Fannie Mae — the nation’s largest company by assets — and Freddie Mac. The two mortgage financing organizations, which support nearly half of the U.S. residential mortgage market, were taken over by the FHFA during the 2008 economic crisis.

The grandson of one of Michigan’s wealthiest and most prolific homebuilders, Pulte made a name for himself on Twitter in 2019 with public cash giveaways to individuals in need. He dubbed himself the “inventor of Twitter philanthropy,” vowing to give two cars away in exchange for a Trump retweet that year, which he received. He subsequently built a following of over 3 million.

Records show Pulte donated substantially to Trump, the Republican National Committee and related super PACs leading up to the 2024 election.

Pulte’s letters to Atty. Gen. Pam Bondi have been tightly and cautiously written. But his social media posts, celebrating the targeted attacks, have not.

“Trump becomes the first president ever to remove a sitting Federal Reserve governor,” he wrote on X, between retweets of right-wing commentators praising the move. “Mortgage fraud can carry up to 30 years in prison.”

In another post on X, quoting a CNN headline, Pulte wrote that Trump’s firing of Cook was “escalating his battle against the central bank” — seeming to acknowledge that targeting Cook was motivated by Trump’s ongoing grievances with Fed leadership.

Cook’s firing is legally dubious, and her attorney, Abbe Lowell, said in a statement that Cook plans on suing the administration while continuing to perform her duties for the Fed. Lowell also represents James in her defense against the Justice Department case.

While the Supreme Court ruled in May that Trump may fire individuals from independent federal agencies, the justices singled out the Fed as an exception, calling it a “uniquely structured, quasi-private entity.” The Federal Reserve Act of 1913 states that the president may fire a member of its leadership only “for cause.”

But cause has not been definitively established to fire Cook, with Pulte writing in his letter to Bondi that the Fed governor had only “potentially” committed mortgage fraud, accusing her of falsifying bank documents and property records to acquire more favorable loan terms.

Pulte has accused Cook of listing two homes — in Ann Arbor, Mich., and in Atlanta — as her primary addresses within two weeks of purchasing them through financing. Cook said she would “take any questions about my financial history seriously” and was “gathering the accurate information to answer any legitimate questions and provide the facts.”

Pulte’s other accusations, against James and Schiff, have been similarly superficial, publicly accusing individuals of potential criminality before a full, independent investigation can take place.

And whether those investigations will be impartial is far from clear. Earlier this month, Bondi appointed Ed Martin, a conspiracy theorist who supported the “Stop the Steal” movement after Joe Biden’s election victory over Trump in 2020, as a special prosecutor to investigate the James and Schiff cases.

Pulte accused James — who successfully accused Trump of financial fraud in a civil suit last year — of falsifying bank statements and property records to secure more favorable loan terms for homes in Virginia and New York. He made similar claims weeks later about Schiff, who maintains residences in California and the suburbs of Washington, D.C.

Schiff, who led a House impeachment of Trump during the president’s first term and has remained one of his most vocal and forceful political adversaries since joining the Senate, dismissed the president’s claims as a “baseless attempt at political retribution.”

A spokesperson for Schiff said he has always been transparent about owning two homes, in part to be able to raise his children near him in Washington, and has always followed the law — and advice from House counsel — in arranging his mortgages.

In making his claims, Trump cited an investigation by the Fannie Mae “Financial Crimes Division” as his source.

A memorandum reviewed by The Times from Fannie Mae investigators to Pulte does not accuse Schiff of mortgage fraud. It noted that investigators had been asked by the FHFA inspector general’s office for loan files and “any related investigative or quality control documentation” for Schiff’s homes.

Investigators said they found that Schiff at various points identified both his home in Potomac, Md., and a Burbank unit he also owns as his primary residence. As a result, they concluded that Schiff and his wife, Eve, “engaged in a sustained pattern of possible occupancy misrepresentation” on their home loans between 2009 and 2020.

The investigators did not say they had concluded that a crime had been committed, nor did they mention the word “fraud” in the memo.