Trump’s Fed Fight Heats Up

What began as a fight over mortgage paperwork has turned into a full-blown power struggle for control over the Federal Reserve.

President Donald Trump announced this week that he was firing Fed Governor Lisa Cook, citing allegations of mortgage fraud tied to a Michigan home and an Atlanta condo. The charges were pushed into the spotlight by Bill Pulte, the new FHFA chief, who claimed Cook designated both properties as primary residences. Cook denies any wrongdoing, has not been charged and is now suing Trump to keep her post.

The problem for the White House is that presidents don’t actually have the authority to remove Fed governors. And for real estate, the stakes are less about one official’s paperwork and more about the balance of power between the president and the Fed.

Trump has been frustrated for months with Jerome Powell’s refusal to move faster on rate cuts. Cook, seen as an ally of Powell’s, became an easy target once Pulte raised the fraud claims. But even if Trump could replace her, he’s still far from securing a majority on the board that would allow him to steer policy.

That hasn’t slowed Pulte. Since taking over the FHFA, he’s ousted board members at Fannie Mae and Freddie Mac, installed himself as chair of both and cheered on DOJ investigations into figures Trump views as political enemies. He’s also facing his own legal firestorm: dozens of former Fannie employees — mostly longtime staffers of Indian descent — have sued him and CEO Priscilla Almodovar for defamation after being abruptly fired and accused of fraud. The lawsuits, which seek tens of millions in damages, claim Pulte smeared reputations without evidence.

Together, Pulte and Trump have turned mortgages into political weapons, whether against Fannie and Freddie, New York Attorney General Letitia James or now Cook. And each case fits into a broader Trump agenda of testing the limits of financial oversight.

The Fed’s independence has always been a cornerstone of investor confidence. Rates may be painful now, but they’re predictable, and predictability is what lets developers, lenders and brokers make deals. If Trump successfully politicizes the Fed, interest rate policy could become subject to election cycles and loyalty tests, rather than inflation data.

The irony is that the Fed is already signaling rate cuts may come as soon as next month, thanks to weakening jobs data and tariff aftershocks. Trump’s interventions may only undermine confidence at the very moment the industry is hoping for relief.

There was plenty of other real estate news this week. Bidders are lining up to acquire Paramount Group, Charles Cohen is selling 623 Fifth Ave to Vornado and a new report identifies Miami condo buildings that may be underperforming.

SL Green, Empire State among bidders for Paramount Group: sources

Paramount Group has moved to the second round of its sale process, with bidders including SL Green, Empire State Realty Trust, Vornado, Blackstone, DivcoWest with Saray Capital and Rithm Capital. The REIT, which controls 13 million square feet of office space in New York City and San Francisco, launched a “strategic review” earlier this year as its stock slid to roughly $6.70 a share.

Are these Miami-Dade condo buildings underperforming?

Miami’s skyline reflects the variation found in the current condo market. Not all buildings are created equal. Some command record-breaking prices and quick sales, while others see slower activity or greater price adjustments, as buyers weigh location, design and amenities. Based on a report from Douglas Elliman agent David Siddons, here are some of the buildings he deemed to be the “worst-performing” based on factors like historical price drops, long market time and large discounts.

Charles Cohen to sell Fifth Ave building to Vornado with massive discount

Charles Cohen is offloading his Midtown tower at 623 Fifth Avenue to Vornado for $218 million, a steep discount from the $712 million valuation he once touted. The billionaire is under pressure to raise cash after Fortress Credit Corp. won a nearly $200 million judgment against him tied to a massive loan default.

Donald Trump’s former Park Avenue condo sells for 50% loss

Businessman Robert Tillis just nabbed the priciest sale at Trump Park Avenue since the developer-turned-president assumed office eight years ago. But the deal for the apartment at 502 Park Avenue was still only half of what Tillis paid for it in 2016.

David Martin joins Michael Stern and his partners on planned South Beach condo tower

David Martin’s Terra has officially joined Michael Stern and his partners on a planned luxury condo tower in Miami Beach, adding another heavyweight developer to the high-profile project. The venture, which also includes Gianluca Vacchi’s GV Development and RG Development, has already bulk-purchased more than two dozen condos at the existing Bay Garden Manor building, with a majority buyout expected soon.

Downtown Dallas landmark owned by Jonas Woods heads to foreclosure

Just a year after losing the Comerica Bank Tower, Jonas Woods’ Pacific Elm Properties stands to lose another downtown fixture. One Dallas Center is facing foreclosure after the Dallas-based firm appears to have defaulted on a $34.5 million mortgage.

Boston developer with $6B pipeline skips NYC

Boston developer Michael Fallon has built more than $5 billion in projects nationwide, but despite New York City’s appeal, he’s steering clear of the city in favor of Charlotte, Raleigh and Nashville. Fallon, who leads the Fallon Company’s $6 billion pipeline, says the Southeast offers scale, easier access to capital and fewer political or regulatory hurdles than New York.

Alloy secures $500M for “world’s tallest” passive house building

Developers of what is poised to be the world’s tallest passive house building in the world secured $500 million to get the project off the ground. Alloy Development on Monday closed on $375 million in loans from Kayne Anderson Real Estate for One Third Avenue, a 583-unit tower planned for Downtown Brooklyn. Additionally, Vistria Group, in its first ground-up development, is infusing $120 million in equity and taking a majority stake in the project as a limited partner.

Rising Realty-owned tower in receivership after $300M default

One California Plaza in downtown Los Angeles has been placed in receivership after Rising Realty Partners and DigitalBridge defaulted on $300 million in CMBS debt tied to the property. A judge appointed Trigild as receiver for the 42-story, 1 million-square-foot office tower, though the firm cannot sell the asset without court approval.