Trump Establishes Inquiry Panel to Investigate Fed Governor Lisa Cook Over Mortgage Allegations
President Donald Trump formally established a committee of inquiry to investigate Federal Reserve Governor Lisa Cook over allegations of false statements related to mortgage instruments, according to a White House announcement. The extraordinary move marks a renewed push by the administration to remove Cook from the central bank’s board.
Origins of the White House Inquiry and Legal Precedent
The newly formed committee consists of three executive branch officials: Kevin Hassett, Keith Sonderling, and Andrea Lucas, according to a presidential memorandum posted on the White House website. The panel is scheduled to hold an in-person hearing at the White House on November 5, just two days after the midterm elections.
This unprecedented administrative action revives a conflict that began in August 2025, when Trump first attempted to fire Cook after administration officials claimed she listed two properties in Georgia and Michigan as her primary residence and failed to report rental income on her Atlanta property. Cook immediately challenged the dismissal in court. In June, the Supreme Court temporarily blocked the firing in a ruling, citing a lack of proper legal due process under the Federal Reserve Act, which permits the removal of a governor only “for cause.” While the high court blocked that initial attempt, it did not bar the administration from pursuing removal through additional procedural steps.
Reactions From Legal Counsel and Congressional Leaders
Cook’s attorneys, Abbe Lowell and Norm Eisen, questioned the legitimacy of the inquiry while confirming that their client will participate. In a statement reported by CNBC, the lawyers stated they have grave doubts about whether the hearing will conform to the law, given the president’s repeated statements that he has already decided to fire Cook. Nevertheless, they emphasized that Cook welcomes the opportunity to present facts to clear her name and demonstrate that no legal basis exists for her removal, maintaining that any claims of fraud stem from unrelated clerical errors.
Congressional Democrats immediately condemned the announcement. Sen. Elizabeth Warren accused Trump of convening an illegitimate show trial to seize control of the nation’s central bank. Senate Minority Leader Chuck Schumer echoed those criticisms in a post on X, characterizing the inquiry as an escalation of a smear campaign designed to compromise the Federal Reserve’s institutional independence.
Trump Pressures Fed to Lower Interest Rates
The inquiry unfolds against a backdrop of ongoing friction between the executive branch and central bank leadership over monetary policy. Trump has frequently urged the Federal Reserve to lower interest rates, attributing high borrowing costs to a hostile board. Kevin Warsh, the handpicked Fed chair who succeeded Jerome Powell, has faced repeated scrutiny regarding his ability to maintain central bank independence amid executive pressure. Despite earlier expectations of easing, elevated inflation driven by conflict in the Middle East led the central bank to vote for higher rates at its previous meeting, drawing sharp rebukes from the White House.