President Donald Trump has initiated a committee to investigate Federal Reserve Governor Lisa Cook, focusing on allegations that she made false statements in mortgage applications. The committee will hold a hearing at the White House on November 5, where Cook is expected to attend and respond to questions. The hearing will not be public, but a transcript will be made available.
This inquiry is part of Trump's ongoing efforts to remove Cook, who was appointed by former President Joe Biden and is the first Black woman to serve on the Fed's board. Trump's actions have raised concerns regarding the independence of the Federal Reserve, especially as he has publicly criticized the central bank's decisions, including a recent interest rate hike led by Chairman Kevin Warsh, whom Trump appointed.
In a memorandum, Trump stated that it is his responsibility to ensure laws are enforced and to remove subordinates who cannot be trusted. Cook's legal representatives are considering her participation in the hearing and have indicated that she wishes to clear her name, asserting that any discrepancies in her mortgage applications were inadvertent errors rather than fraudulent actions.
The committee will include members such as Kevin Hassett, the president's economic adviser; Keith Sonderling, acting director of the Office of Government Ethics; and Andrea Lucas, chair of the Equal Employment Opportunity Commission. Trump previously attempted to fire Cook in August 2025, alleging mortgage fraud, which Cook has denied.
The Federal Reserve has not commented on the establishment of the committee. Analysts suggest that the inquiry may be a means for Trump to justify Cook's removal, despite legal standards set by the Supreme Court regarding the grounds for firing a Fed governor. The Supreme Court previously ruled that Cook could retain her position after Trump's initial attempt to dismiss her, noting that he could pursue the matter again under proper procedures.
Scott Alvarez, a former chief counsel for the Fed, remarked that the process Trump is employing exceeds what the Supreme Court indicated was necessary for a lawful dismissal. However, he noted that the allegations against Cook may not meet the required standard for a justified firing. Jaret Seiberg, managing director of TD Cowen's Washington Research Group, expressed skepticism about the committee's intentions, suggesting it is likely aimed at creating a rationale for Cook's removal.