Trump forms committee to investigate Fed governor Cook

Court ruled in June that Cook’s removal was unconstitutional

President Donald Trump on Friday announced the establishment of a committee to investigate Federal Reserve Governor Lisa Cook over mortgage fraud allegations, renewing his effort to oust her from the central bank board roughly four months after the Supreme Court ruled her earlier firing unconstitutional. The committee will consult with Justice Department officials to determine whether “cause” exists for Cook’s removal, according to a White House statement posted to the agency’s website. A closed but transcribed in-person hearing at the White House is scheduled for November 5 to consider the allegations.

The investigation extends a confrontation between the Trump administration and the Federal Reserve, an institution Congress created to be independent and nonpartisan. Economists widely agree that a central bank unswayed by politics is essential for the stability of a country’s economy.

“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 said in his Friday statement.

The allegations against Cook center on mortgage paperwork. According to Trump’s August 2025 announcement of her firing, Cook 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’s legal team has maintained that the White House is “cherrypicking” facts and that any fraud claims are based on unrelated clerical errors.

Cook immediately sued the Trump administration. The Supreme Court reinstated her in a 5-4 ruling, allowing her to remain as governor while she fought the 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.

The November 5 hearing will be closed to the public but transcribed and published, according to the White House. Cook will be able to submit a written statement presenting her own evidence and will be subject to examination from White House attorneys and her own legal counsel.

Cook’s first firing came in August 2025 as Trump was attacking then-Federal Reserve Chair Jerome Powell in a pressure campaign aimed at getting the central bank to lower interest rates. Trump also opened a Justice Department investigation into Powell, which was dropped in April.

Kevin Warsh, Powell’s successor as Fed chair, has faced repeated questions over how he will maintain the institution’s independence. Before Trump selected him to lead the central bank, Warsh had echoed the president’s calls for cutting rates. The Federal Reserve voted to raise rates at its most recent meeting, a decision that drew White House criticism just over a month before midterm elections. The Guardian reported the rate increase was driven by elevated inflation tied to the war in the Middle East.

The renewed effort against Cook comes as the Trump administration has previously used federal law-enforcement mechanisms against Federal Reserve leadership. A Justice Department investigation of then-Chair Powell, opened during the administration’s pressure campaign over interest rates, was closed without charges in April.