Donald Trump has launched a committee to investigate Lisa Cook, just months after the Supreme Court rebuffed the president’s attempts to sack the Federal Reserve governor.
The committee will investigate claims that Cook made “false statements in connection with one or more mortgage instruments” and will conduct an in-person hearing addressing the matter on November 5.
Trump’s move comes after the Supreme Court ruled in June by a five-four majority that Cook could remain in her position as Trump had failed to give her the ability to properly dispute his attempt to fire her.
Cook has denied the allegations against her and has not been convicted of any wrongdoing.
The memo directs Cook to appear in person for questioning by the committee and submit written statements before and after the hearing. After receiving her final written statement, the panel will submit its findings to the president and recommend whether Cook should be removed.
“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 said in a statement dated October 7 that was issued by the White House on Friday.
Trump named to the committee political appointees including Kevin Hassett, assistant to the president for economic policy; Andrea Lucas, chair of the US Equal Employment Opportunity Commission; and Keith Sonderling, acting director of the US Office of Government Ethics.
Cook’s lawyers said in a statement that they had engaged with the White House to evaluate whether Trump’s proposed process “has a possibility of being a genuine one and not simply a box-checking exercise”.
“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,” said lawyers Abbe Lowell and Norm Eisen. “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.”
Trump’s decision to launch the new inquiry will reignite fears over the independence of the world’s most important central bank to set interest rates free from political pressure.
Since returning to the White House, Trump has heaped pressure on rate-setters to slash borrowing costs, with administration officials attacking several members of the Fed’s board.
Trump has also called for former Fed chair Jay Powell to step down over claims that he mishandled a $2.5bn renovation of the Fed’s headquarters. Powell revealed in January that federal prosecutors had launched a criminal probe into him over the project, igniting a powerful backlash from former Fed chiefs and investors who worried the investigation was designed to force the central bank to cut borrowing costs.
The justice department later dropped the probe after Republican lawmakers blocked the appointment of new Fed chair Kevin Warsh unless the administration reversed course.
Powell was later cleared of any criminal wrongdoing in an investigation by the Fed’s Inspector General watchdog, with DoJ chief Todd Blanche also pledging not to reopen its criminal investigation into Powell.
Administration officials have also lashed out against former vice-chair of supervision Michael Barr over the failure of Silicon Valley Bank in 2023. While Barr is no longer the Fed’s supervision head, he remains one of seven officials on the Fed board.
The Fed raised borrowing costs for the first time in three years in September in an attempt to bring inflationary pressures sparked by the Iran war and the AI boom under control.
After losing at the Supreme Court, Trump revived his efforts to oust Cook in August. The White House sent her a letter to formally notify her Trump was again considering whether to dismiss her over allegations of mortgage fraud.
Cook pushed back, saying she had mistakenly listed two properties as her primary residence, suggesting there was no “intentional wrongdoing”.
The allegations against Cook stemmed from a criminal referral last year by federal housing director Bill Pulte, who asserted that she claimed primary residence status on properties in Michigan and Georgia.
The November 5 committee hearing will be closed to the public but transcribed, according to the memo.
This is a developing story