President Donald Trump formally established a "committee of inquiry" to investigate allegations that Federal Reserve Governor Lisa Cook made false statements related to "one or more mortgage instruments," the White House announced on October 6, 2026. This announcement is part of Trump's ongoing effort to remove Cook, who was nominated by former President Joe Biden, from the Federal Reserve's board. Trump has previously criticized the Federal Reserve for not lowering interest rates, attributing the failure to his appointed chair, Kevin Warsh, and the board's perceived hostility.
The committee consists of three executive branch officials: Kevin Hassett, Trump's top economic aide; Keith Sonderling, acting head of the Office of Government Ethics; and Andrea Lucas, Chair of the Equal Employment Opportunity Commission. The announcement did not mention any independent arbiters.
This action is considered unusual, as it has not been used in nearly a century, and it has raised concerns regarding the independence of the Federal Reserve. Congressional Democrats have criticized the move, while Cook's legal team has expressed skepticism about the committee's legitimacy.
Historically, similar committees have been convened by past presidents, including President William Taft in 1912 and President Herbert Hoover in 1931. The Supreme Court previously blocked Trump's first attempt to fire Cook, citing the lack of due process.
Cook's attorneys stated that she welcomes the opportunity to present her case but have doubts about the inquiry's objectivity. They emphasized that Cook did not commit mortgage fraud and that there is no legal basis for her removal.
Trump's memo establishing the committee states that it will investigate the allegations against Cook and determine whether there is "cause" for her removal under the Federal Reserve Act. The committee is scheduled to hold an in-person hearing at the White House on November 5, 2026, two days after the midterm elections.
Senator Elizabeth Warren criticized Trump for what she termed an "illegitimate show trial" and accused him of attempting to take control of the Federal Reserve. Senate Minority Leader Chuck Schumer also condemned Trump's actions, suggesting they are part of a smear campaign against Cook and expressing concern over the implications for economic stability.