Trump demands resignation of another Fed official 

Fed governor accused of mortgage fraud

A second Federal Reserve official is now facing calls from President Donald Trump to resign.

Trump, who has repeatedly urged Fed Chair Jerome Powell to step down over the central bank's freeze on short-term interest rates, shifted his attention on Aug. 20 to Fed Governor Lisa Cook, whom Federal Housing Finance Agency (FHFA) Director Bill Pulte suggested may have committed mortgage fraud.

In a letter referring the matter to the U.S. Department of Justice, Pulte alleged that mortgage documents obtained by the FHFA showed that Cook "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute."

Cook "should immediately resign" from the Fed, Pulte wrote in an Aug. 20 post on X, a sentiment echoed on social media by Trump. Pulte later added that he believes Trump "has cause to fire" Cook.

In a statement sent by the Federal Reserve to Real Estate News, Cook said she has "no intention of being bullied" into leaving her post.

"I learned from the media that FHFA Director William Pulte posted on social media that he was making a criminal referral based on a mortgage application from four years ago, before I joined the Federal Reserve," Cook said.

"I have no intention of being bullied to step down from my position because of some questions raised in a tweet. I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts."

The search for Powell's replacement

Powell's term as Fed chair ends in May 2026. While Trump has frequently expressed frustration with the Fed's monetary policy decisions since returning to the White House, he cannot legally fire Powell without cause.

But the president can start looking for a new chair — a process that Treasury Secretary Scott Bessent said has already begun. Eleven "very strong candidates" are in the running, Bessent said during an Aug. 19 CNBC "Squawk Box" interview, adding, "I'm going to be meeting with them probably right after Labor Day, and to start bringing down the list to present to President Trump."

Fed researching crypto, AI in payments

Ahead of Powell's keynote address at the annual Jackson Hole Economic Symposium on Aug. 22, Fed Governor Christopher Waller delivered a speech of his own on the evolution of payment technologies while at the Wyoming Blockchain Symposium on Aug. 20.

Waller cited the continuous improvements of credit cards — both in form and ease of use — as an example before declaring that stablecoins and AI are also witnessing "private sector-led innovation in payments."

The Fed is "conducting technical research on the latest wave of innovations, including tokenization, smart contracts, and AI in payments," Waller said, adding, "it is my belief that the Federal Reserve could benefit from further engagement with innovators in industry, particularly as there is increased convergence between the traditional financial sector and the digital asset ecosystem."

HUD takes 'English only' approach

The U.S. Department of Housing and Urban Development will no longer provide consumer materials in languages other than English, according to a memo obtained by The New York Post. The move is likely to pose challenges for many who rely on language translation services to obtain government assistance, and the policy change is already receiving pushback from a labor union that represents HUD employees, The New York Times reported.

HUD Secretary Scott Turner confirmed the shift in an Aug. 19 post on X that cited Trump's March executive order declaring English the country's official language.

As a result of that decree, "HUD will solely use English for all Departmental business and services. We are one people, united, and we will speak with one voice and one language to deliver on our mission," Turner wrote, later reiterating, "HUD is ENGLISH only."

There will be some exceptions, the memo indicated, including those legally required by the Americans with Disability Act and the Violence Against Women Act, The Post reported.

A Fannie-Freddie merger?

Two weeks after the Trump administration reportedly set a timeline for taking Fannie Mae and Freddie Mac public, a former risk management official with the government-sponsored enterprises (GSEs) has suggested that merging the GSEs could be beneficial.

In an interview with HousingWire, Clifford Rossi described Fannie and Freddie as "nothing more than a large financial market utility" that only differ on pricing. The GSEs could be merged "fairly quickly and seamlessly," Rossi said, adding that the process might lead to lower mortgage rates. But if investors stop thinking of Fannie and Freddie as government-backed agencies, rates could climb instead, he warned.