Trump Forms Committee to Investigate Federal Reserve Governor Lisa Cook
According to reporting from The Guardian, President Donald Trump has announced the formation of a committee to investigate Federal Reserve Governor Lisa Cook over allegations of mortgage fraud. This move marks a renewed effort by the administration to remove Cook from her position, despite a June Supreme Court ruling that declared her initial firing unconstitutional due to procedural failures. The White House has scheduled a closed-door hearing for November 5 to review the allegations, while Cook's legal team maintains that the claims are based on clerical errors and that the administration is cherry-picking facts.
Key points
- The Guardian reports that President Trump established a committee to investigate Federal Reserve Governor Lisa Cook for alleged mortgage fraud.
- A closed-door hearing is scheduled for November 5 to consider the allegations.
- The Supreme Court previously ruled that Cook's initial firing in 2025 was unconstitutional.
- According to her legal team, Cook denies the fraud allegations, characterizing them as clerical errors.
- The investigation follows ongoing tensions between the White House and the Federal Reserve regarding interest rates.
What happened
According to The Guardian, President Donald Trump announced the creation of a committee tasked with investigating Federal Reserve Governor Lisa Cook. The committee will coordinate with the Justice Department to determine if there is sufficient cause for her removal from the Federal Reserve Board.
The White House has set an in-person hearing for November 5. While the proceedings will be closed to the public, the administration stated that the hearing will be transcribed and published. Cook will be permitted to present evidence and legal counsel.
Who said what
In a statement reported by The Guardian, President Trump asserted that it is his responsibility to ensure laws are executed, including the removal of subordinates who he claims have not been truthful. The administration's allegations center on claims that Cook listed two properties as primary residences and failed to report rental income.
Cook's legal representatives expressed skepticism regarding the legitimacy of the upcoming hearing. They stated that they have grave doubts the process will conform to the law, though they noted that Cook welcomes the opportunity to clear her name and demonstrate that no legal basis exists for her removal.
Context
The Guardian reports that Cook was appointed to the Federal Reserve in 2022. Her conflict with the administration began in August 2025 when she was initially fired. Following a lawsuit, the Supreme Court reinstated her in a 5-4 decision, ruling that the administration failed to provide her with an opportunity to dispute the allegations before termination.
The Federal Reserve is designed to function as an independent, non-partisan institution. The current investigation occurs amid broader tensions between the White House and the central bank over monetary policy and interest rates.
What happens next
The White House hearing is scheduled to take place on November 5. The outcome of this committee's review will determine the administration's next steps regarding Governor Cook's tenure at the Federal Reserve.
