Trump sets up committee to probe Federal Reserve Governor Lisa Cook in latest bid to fire her

Federal Reserve Board of Governors member Lisa Cook leaves the Supreme Court in Washington. (AP Photo)

US President Donald Trump has set up a committee to investigate Federal Reserve Governor Lisa Cook over allegations that she made false statements in mortgage applications, renewing his efforts to remove her from the central bank.The committee will examine the allegations and report to Trump on whether there is sufficient cause to remove Cook, according to a presidential memorandum published on the White House website. The panel will hold an in-person hearing at the White House on November 5, where Cook is expected to respond to the charges. The hearing will not be public, but a transcript will be published, the memo said.Trump’s latest move comes after the US Supreme Court allowed Cook to remain in her position following his earlier attempt to fire her in August 2025. The court’s June ruling said the president could pursue her removal again if he provided adequate notice and an opportunity for her to respond to the allegations.Trump initially sought to remove Cook after accusing her of mortgage fraud over applications filed in 2021 that allegedly listed two different properties as her primary residence. Mortgages for primary residences can come with lower interest rates or other favourable terms.Cook has denied wrongdoing and has not been charged with a crime. Her lawyers, Abbe Lowell and Norman Eisen, have described the alleged discrepancy as an inadvertent error, arguing that it does not amount to fraud.In a statement, the lawyers said Cook welcomed the opportunity to present the facts and clear her name. They added that they were in discussions with the White House to determine whether the proposed process would provide a genuine opportunity to respond to the allegations.Trump said in the memorandum that he was responsible for ensuring that the law was faithfully executed, including by removing officials he believed could not be trusted to tell the truth and follow the law.The case has raised concerns about the independence of the Federal Reserve, which sets US monetary policy. Trump has repeatedly called for interest rate cuts, while criticising the central bank’s rate decisions.Cook’s position on the Fed’s seven-member board of governors also makes her one of the 12 voting members of the Federal Open Market Committee, which determines the benchmark interest rate.Cook was appointed to the Fed board by former President Joe Biden in 2022 and reappointed in 2023. Her current term runs until 2038. She was the first Black woman to serve on the central bank’s board.