President Donald Trump has ordered the formation of a three-person committee to investigate mortgage fraud allegations against Federal Reserve Governor Lisa Cook. The committee will hold a closed-door hearing at the White House on November 5, where Cook will have an opportunity to respond to the charges.
This action marks an unprecedented attempt by a president to remove a Federal Reserve governor in the central bank's 112-year history. The statute permits removal "for cause," though the term is not explicitly defined.
Trump's memo directs the committee to submit written findings of fact, conclusions of law, and a recommendation on whether "cause" exists to remove Cook. The panel will consist of top Trump economic adviser Kevin Hassett, Equal Employment Opportunity Commission Chair Andrea Lucas, and Keith Sonderling, acting director of the Office of Government Ethics.
Cook has sued Trump to block his previous attempt to remove her, asserting her innocence and claiming his efforts were motivated by her refusal to lower interest rates. Her attorneys have expressed significant doubts about the legitimacy and legality of the newly ordered hearing, stating they are evaluating whether the process will be genuine or merely a formality. They also noted that if the hearing is objective, it will conclude that no cause exists to remove Governor Cook.
Despite these reservations, Cook's legal team indicated she welcomes the chance to present facts to clear her name. The hearing, though closed to the public, will be transcribed.
The Supreme Court previously rejected Trump's initial attempt to dismiss Cook, with Chief Justice John Roberts stating that a final decision required Cook to have an opportunity to respond to the allegations.