The U.S. Justice Department has launched a criminal investigation into Federal Reserve Governor Lisa Cook regarding potential mortgage fraud. This development intensifies the scrutiny surrounding Cook as President Donald Trump seeks to remove her from her position at the central bank.

On Thursday, the Justice Department confirmed the initiation of the investigation, which includes the issuance of subpoenas. This inquiry coincides with Cook's ongoing lawsuit against Trump in federal court, challenging her dismissal from the Federal Reserve Board. Cook argues that her firing undermines the independence of the central bank.

The allegations against Cook were initially raised by Bill Pulte, a Trump appointee to the agency overseeing Fannie Mae and Freddie Mac. Pulte submitted two referrals to the Justice Department, claiming that Cook misrepresented the use of three mortgages she obtained prior to her appointment to the Federal Reserve. These loans are associated with properties located in Michigan, Georgia, and Massachusetts.

Trump has cited these allegations as justification for his attempt to oust Cook from her role. In her lawsuit, filed on August 28, Cook does not address the specifics of why she listed two of the properties as her primary residence on mortgage applications. Her attorney, Abbe Lowell, stated in a September 2 filing that Cook "did not ever commit mortgage fraud."

The White House has directed inquiries regarding the investigation to the Justice Department, while the Federal Reserve has declined to comment on the matter. Prior to Cook's lawsuit, a spokesperson for the Federal Reserve acknowledged the potential for legal disputes, stating on August 26 that the institution would "abide by any court decision."

This story is still developing, and further updates are expected.