Trump Establishes Fed Investigative Committee That Could Lead to Lisa Cook's Removal

The White House announced Friday the formation of an investigative committee targeting Federal Reserve Governor Lisa Cook over allegations of submitting false information on mortgage documents, in the latest effort by President Donald Trump to remove her from the Board. The presidential memorandum is dated October 7.

The committee comprises three officials: Kevin Hassett, Director of the National Economic Council; Andrea Lucas, Chair of the Equal Employment Opportunity Commission; and Keith Sonderling, Acting Director of the Office of Government Ethics. The committee will hold a closed-door hearing at the White House on November 5 lasting no longer than four hours. The proceeding will be transcribed but not public, and Cook may submit a written statement at least three days prior and present her evidence, after which the committee will submit its findings and recommendation to Trump regarding the existence of 'for cause' grounds for dismissal.

Trump had previously attempted to remove Cook in August 2025 after Bill Pulte, head of the Federal Housing Finance Agency, accused her of falsifying mortgage documents. However, the Supreme Court halted the move in June 2026 in a 5-4 ruling, stating she was denied due process, before the administration renewed its attempt in August 2026 and gave her 21 days to respond. She denies any wrongdoing.

Cook's attorneys stated that they question the legality of the hearing, describing it as a potential 'pretextual proceeding,' while Cook welcomed the opportunity to clear her name. Senator Elizabeth Warren called the move a 'kangaroo court,' noting that no U.S. president has ever removed a Fed governor before. This comes ahead of the expected interest rate decision on October 28.

What do these terms mean?

Federal Reserve: The central bank of the United States, which sets interest rates that affect borrowing costs worldwide.

Fed Governor: A member of the Board of Governors that manages monetary policy, appointed to a long term of up to 14 years to shield them from political pressure.

For Cause: A legal standard permitting the removal of an official when justified, typically interpreted narrowly to include gross negligence or misconduct.