Trump creates committee to investigate Fed's Lisa Cook as he seeks her removal
President Trump signed an order forming a committee to investigate Federal Reserve Governor Lisa Cook over allegations of false statements on mortgage instruments. The panel is set to meet Nov. 5 and report whether there is cause to remove her. Cook's attorneys said they doubt the hearing will be legitimate and maintained she did not commit mortgage fraud.
Trump signed a memorandum on Friday directing the attorney general and other senior officials to form a committee examining whether Fed Governor Lisa Cook made false statements tied to mortgage documents. The panel is scheduled to hold a Nov. 5 hearing, two days after midterms, and will report whether cause exists for removal.
Cook's lawyers, Abbe Lowell and Norm Eisen, questioned the proceeding's legitimacy, citing Trump's prior statements that he had decided to dismiss her. They said she denies mortgage fraud and welcomes a chance to present facts. A June Supreme Court ruling let her remain in office temporarily while preserving a chance to defend herself.
The dispute may shape public confidence in the Federal Reserve's independence from White House pressure. If investors question that independence, borrowing costs, mortgage rates, and financial-market volatility could be affected, touching households, businesses, and savers. It may also influence how future administrations test removal rules for central-bank officials. Because the hearing follows the midterms, its outcome could carry political and economic weight beyond Cook's own job.