Trump Establishes Committee to Investigate Federal Reserve Governor Lisa Cook

<figure><img alt="US President Donald Trump reacts during a Columbus Day celebration in the East Room of the White House in Washington, D.C., US, October 9, 2026. REUTERS/Evan Vucci" src="https://thedailybeast-thedailybeast-prod.web.arc-cdn.net/resizer/v2/FGKKRZQNUBDUPCZS7GV6KDQDVM.JPG?auth=95079a22fa0d5d26aeb435a9ee4ef613c1bb9b0b157cce4b6039a11440ca9286&amp;smart=true&amp;width=4400&amp;height=2475" /><figcaption>Evan Vucci / REUTERS</figcaption></figure><p>President Donald Trump has intensified his efforts against Federal Reserve Governor Lisa Cook. Following a Supreme Court ruling that prevented him from firing Cook, who was appointed by President Biden, Trump announced a new plan to investigate her conduct.</p><p>On October 7, Trump issued a memo establishing a committee to examine allegations against Cook, stating that the committee will convene at the White House on November 5 to review the evidence.</p><p>In the memo, Trump stated, “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.”</p><img alt="Lisa Cook, member of the Board of Governors of the US Federal Reserve, attends a Federal Reserve Board open meeting discussing proposed revisions to the board's supplementary leverage ratio standards at the Federal Reserve Board building in Washington, DC, on June 25, 2025. / Saul Loeb / AFP via Getty Images" height="683" src="https://thedailybeast-thedailybeast-prod.web.arc-cdn.net/resizer/v2/KVHEG6QTH5FBRI7RK6OXOFJTGE.jpg?auth=4b90601e92dce519b915becb557b4f9d9386657722c98095ad4c5b995c0f6218&amp;smart=true&amp;width=1024&amp;height=683" width="1024" /><p>Cook is one of seven governors of the Federal Reserve, which is responsible for setting key fiscal policies, including interest rates. She is one of three governors appointed by Biden.</p><p>Tensions between Cook and Trump escalated after he attempted to terminate her in August 2025, citing allegations of mortgage fraud. The allegation originated from Bill Pulte, head of the Federal Housing Finance Agency.</p><p>Cook has denied any wrongdoing and has argued in court that Trump does not have the authority to remove her based on these allegations. The Supreme Court ruled in her favor, which frustrated Trump and limited his influence over monetary policy.</p><p>In response to the establishment of the committee, Cook’s legal team expressed skepticism about the legitimacy of the inquiry, noting Trump's prior statements indicating he had already decided to fire her.</p><p>Cook's lawyers stated, “We have 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.” They added that Cook is prepared to present evidence to clear her name.</p><p>The committee's mandate includes investigating allegations that Cook made false statements related to mortgage instruments. The hearing is scheduled to last no more than four hours.</p><p>Committee members include Trump’s economic advisor Kevin Hassett, the chair of the Equal Employment Opportunity Commission, Andrea Lucas, and acting director of the Office of Government Ethics, Keith Sonderling, all of whom are Trump appointees.</p><p>The committee is expected to provide recommendations regarding Cook's position, which could enable Trump to remove her if justified. Historically, no president has removed a sitting Federal Reserve governor in the institution's 113-year history.</p><p>The White House and Cook have not yet responded to requests for comment.</p>