Trump sets up committee to probe Fed governor Lisa Cook

Trump establishes committee to investigate Fed governor Lisa Cook

Committee formation

On Friday, President Donald Trump announced the creation of a committee to investigate Federal Reserve governor Lisa Cook over allegations of mortgage fraud. The committee will consult with Justice Department officials to determine whether there is cause for Cook’s removal.

Hearing schedule

The White House will conduct an in-person hearing on 5 November to consider the allegations. The hearing will be closed to the public but will be transcribed and published. Cook will be able to submit a written statement and will be examined by White House and her own legal counsel.

Legal background

Cook’s dispute with the administration began in August 2025 when she was abruptly fired after Trump claimed she committed mortgage fraud by listing two properties in Georgia and Michigan as her primary residence and failing to report rental income on her Atlanta property. Cook sued the administration, and the Supreme Court reinstated her after a 5-4 ruling that she could stay on as governor while fighting the fraud allegations. In June, the court ruled that Trump’s firing was unconstitutional because he did not follow proper procedure and give Cook an opportunity to dispute the allegations before she was fired.

Context

Cook’s firing coincided with Trump’s attacks on the Fed’s chair, Jerome Powell, and a Justice Department investigation into Powell that was dropped in April. Congress created the Fed to be an independent, nonpartisan institution, and economists widely agree that a central bank unswayed by politics is essential for economic stability.

Source: Theguardian