Federal Reserve Governor Lisa Cook has been cleared by Ann Arbor tax officials of any violations related to property tax exemptions on her Michigan home, strengthening her defense against the Trump administration’s efforts to remove her from the Fed board.
Ann Arbor City Assessor Jerry Markey confirmed that Cook’s temporary absences and short-term rentals of the property did not disqualify her from the city’s principal residence exemption. Local records show Cook obtained approval to rent the home short-term in 2022 and 2024, and later sought permission for long-term rental in April 2025.
The Trump administration, led by Federal Housing Finance Agency Director Bill Pulte, has accused Cook of mortgage fraud, alleging she misrepresented her Michigan and Atlanta homes as primary residences to obtain favorable loan terms. The Department of Justice has opened an investigation, though experts say such cases are rarely prosecuted unless lenders face significant financial losses.
Cook denies any wrongdoing. Her attorneys argue the accusations are based on “cherry-picked” social media claims that collapse under scrutiny. Property tax records in Georgia further support her case, showing she never declared the Atlanta property as a primary residence.
Mortgage data also weakens fraud claims. Cook’s interest rates—2.875% on her Michigan loan and 3.25% on the Atlanta loan—were not below prevailing market averages in 2021. Legal experts note that without evidence of deliberate deception or financial loss to lenders, prosecution is unlikely.
The controversy comes as a federal appeals court blocked Trump’s attempt to fire Cook, with the administration expected to appeal to the Supreme Court. The outcome could influence her role in the Fed’s upcoming policy meeting, though local officials say Cook has until year-end to revoke her Michigan tax exemption.