Trump sets up committee to investigate Fed Governor Lisa Cook, hearing set for Nov. 5

President Donald Trump has formally established a "committee of inquiry" to investigate allegations that Federal Reserve Governor Lisa Cook made false statements in connection with "one or more mortgage instruments," the White House announced Friday. The announcement is the latest development in Trump's effort to fire Cook from the central bank's board. CNN reported the alleged false statements concern mortgages on two properties. [ 3 , 5 , 6 , 7 , 14 , 17 ]

According to the presidential memorandum, which is dated Wednesday and was posted on the White House website, the committee will "investigate the allegations against Governor Cook and report to me whether there is 'cause' for Governor Cook's removal." The committee comprises three executive branch officials: Kevin Hassett, Trump's top economic aide and director of the National Economic Council; Keith Sonderling, the Labor secretary and acting head of the Office of Government Ethics; and Equal Employment Opportunity Commission Chair Andrea Lucas. CNBC noted that no outside, independent arbiters are mentioned. [ 3 , 5 , 6 , 17 ]

The committee will hold an in-person hearing at the White House on Nov. 5, which NBC News noted is two days after the midterm elections. The hearing will not be public, but a transcript will be published, the memorandum said. The memo says Cook "shall appear at the hearing and be examined by the Committee" and may submit a written position statement and "present argument, written evidence, and written witness statements regarding the evidence and allegations." The committee may also authorise its representatives, including Department of Justice personnel, to conduct questioning, according to the memorandum cited by CBS News. [ 5 , 6 , 7 , 16 , 17 ]

"As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law," Trump wrote in the memorandum. [ 7 , 14 , 16 ]

Cook's attorneys, Abbe Lowell and Norm Eisen, said in a statement: "In light of the President's repeated statements that he has already decided to fire Governor Cook — regardless of the facts and evidence — we have grave doubts that this 'hearing' is a legitimate one that would conform to the law. But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board." They said they had engaged with the White House "to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box-checking exercise," and that Cook "welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her." AP reported the lawyers were considering having Cook appear at the hearing. The Guardian reported her legal team has maintained that the White House is "cherrypicking" facts and that any fraud claims are based on unrelated clerical errors. CNBC reported congressional Democrats quickly criticised the announcement. [ 3 , 5 , 6 , 7 , 16 , 17 ]

The Supreme Court in June blocked Trump's first attempt to fire Cook; The Guardian described the ruling as finding her earlier firing unconstitutional, while CNBC said it temporarily blocked the removal. CNBC reported the court cited a 1912 committee appointed by President William Taft and that President Herbert Hoover convened a similar panel in 1931, with no modern precedent. CNN cited analysts saying the committee and hearing date indicate Trump officials are addressing procedural issues raised by the ruling; Tim Mahedy, a former official at the Federal Reserve Bank of San Francisco, said it "seems tailor-made to address the Supreme Court's biggest criticism in its last attempt: that Governor Cook didn't have a chance to defend herself." NBC News reported that in August a top White House official wrote to Cook saying Trump was considering removing her. [ 3 , 5 , 6 , 16 ]

Cook was appointed by former President Joe Biden; The Guardian said she was appointed in 2022 to a 14-year term. AP said she is the first Black woman on the Fed's board and that Trump's attempts to fire her are the first time in the central bank's 113-year history that a president has sought to remove a Fed governor. AP reported that Trump has repeatedly called for the Fed to cut its key interest rate, but that last month the Fed raised it instead under Chairman Kevin Warsh, whom Trump appointed earlier this year. CNN said the hearing comes weeks before the Fed's next monetary policy meeting. [ 3 , 6 , 7 , 16 ]