President Donald Trump announced on Friday that he is establishing a formal committee to investigate Federal Reserve Governor Lisa Cook, reviving his push to remove her from office despite a Supreme Court ruling that declared his earlier termination of her unconstitutional.
The newly formed committee will work with Justice Department officials to determine whether sufficient "cause" exists to justify Cook's removal. A closed-door hearing scheduled for 5 November will examine the allegations against her, with the proceedings to be transcribed and made public. Cook will have the opportunity to submit written evidence and will face questioning from both White House representatives and her own legal team.
"As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,"Trump stated in a memorandum released through the White House.
The committee comprises Kevin Hassett, Keith Sonderling, and Andrea Lucas, according to reporting from a major news service. The White House memorandum specifies that the hearing may not exceed four hours in duration.
Who is Lisa Cook?
Cook was appointed by former President Joe Biden in 2022 to serve a 14-year term as a Federal Reserve governor, making her the central bank's first Black governor. Prior to joining the Fed, she held faculty positions at Harvard University and Stanford University and served as a member of former President Barack Obama's Council of Economic Advisers. Notably, Cook has not been charged with any crime, despite the allegations now under investigation.
What are the fraud allegations?
Trump initiated Cook's removal in August 2025, claiming she had committed mortgage fraud by designating two properties—one in Georgia and another in Michigan—as her primary residence while failing to report rental income from her Atlanta property. Cook's legal representatives have countered that the White House is "cherrypicking" facts and that any fraud claims stem from unrelated clerical errors. According to reporting from a national broadcaster, mortgage documents reviewed described the property in question as a "vacation home" rather than Cook's primary residence.
What happened after Trump fired her?
Cook immediately challenged her termination in court. The Supreme Court reinstated her following a 5-4 ruling that permitted her to remain as governor while contesting the fraud allegations. In June, the court determined that Trump's firing violated the Constitution because he failed to follow proper procedure and did not provide Cook with an opportunity to respond to the allegations before her removal. The Supreme Court's decision left open the possibility that Trump could attempt removal again if Cook received proper notice and a chance to defend herself—a pathway the current committee process appears designed to follow.
Why did Trump target the Fed?
Cook's removal came as Trump was mounting unprecedented attacks on the Federal Reserve's leadership, particularly then-Chair Jerome Powell, as part of his campaign to pressure the central bank into lowering interest rates. Trump also initiated a Justice Department investigation into Powell, which was closed in April. The timing reflected broader tensions between the Trump administration and the Fed over monetary policy decisions.
What is at stake for the Federal Reserve?
Congress established the Federal Reserve as an independent, non-partisan institution. Economic experts widely agree that insulating a central bank from political pressure is vital for maintaining economic stability. Kevin Warsh, Powell's successor as Fed Chair, has repeatedly faced scrutiny regarding his ability to preserve the institution's independence. Before Trump selected him to lead the world's most powerful central bank, Warsh had supported the president's calls for rate cuts. However, elevated inflation stemming from Middle East conflict prompted the Fed to vote for rate increases at its most recent meeting, a decision that drew White House criticism just over a month before significant midterm elections.
What happens next in the investigation?
According to reporting on the committee's procedures, Cook's written position statement must reach the committee no later than three days before the 5 November hearing. Cook's legal representatives, Abbe Lowell and Norman Eisen, are currently evaluating whether she will attend the hearing in person and respond to the allegations. Following the hearing, the committee is expected to receive an additional written statement from Cook before issuing a recommendation to Trump on whether cause exists for her removal.
