President Donald Trump has appointed a three-member committee to investigate allegations that Federal Reserve Governor Lisa Cook made false statements on mortgage documents, reopening his effort to remove her after the Supreme Court ruled that she must receive adequate notice and an opportunity to defend herself.
By yourNEWS Media Newsroom
WASHINGTON — President Donald Trump announced Friday the formation of a special White House committee to investigate Federal Reserve Governor Lisa Cook over allegations of false statements on mortgage documents, establishing a formal hearing process that could lead to another attempt to remove her from the central bank’s governing board.
The three-member committee will examine the accusations and conduct a closed-door hearing Nov. 5, two days after the midterm elections. Cook will be required to answer questions about the mortgage transactions, submit any evidence supporting her defense and respond to the committee’s findings before it makes a recommendation to the president.
The announcement, contained in an Oct. 7 presidential memorandum published by the White House on Friday, represents Trump’s latest effort to remove Cook following a June Supreme Court ruling that prevented him from dismissing her without providing adequate procedural protections.
Cook has denied wrongdoing and has not been charged with a crime. Her attorneys questioned whether the administration can provide an impartial hearing after Trump repeatedly expressed his intention to fire her, while Sen. Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, accused the president of pursuing a predetermined outcome to increase White House influence over monetary policy.
The dispute raises an important legal question concerning the president’s authority over the Federal Reserve, whose governors serve lengthy terms and may be removed only for cause under federal law. No president has successfully removed a sitting governor from the central bank’s board during the Federal Reserve’s 113-year history.
Trump’s new inquiry seeks to establish whether Cook’s alleged conduct satisfies that statutory standard, which was central to the Supreme Court’s decision earlier this year. The president maintains that he has a constitutional responsibility to ensure that federal officials comply with the law and act honestly in positions of public trust.
“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 wrote in the memorandum.
The president directed the committee to investigate Cook’s mortgage-related statements and determine whether the evidence establishes sufficient grounds for her removal from the Federal Reserve Board of Governors. The committee may consult with the Justice Department and other executive agencies while reviewing relevant documents, testimony and legal arguments.
Its members are Kevin Hassett, director of the National Economic Council and one of Trump’s principal economic advisers; Andrea Lucas, chair of the Equal Employment Opportunity Commission; and Keith Sonderling, acting director of the Office of Government Ethics.
All three serve in senior positions within the Trump administration. Their selection has generated criticism from Cook’s supporters, who argue that officials appointed by the president may have difficulty conducting an independent assessment when he has already declared that the governor should be removed.
The administration has not described the proceeding as a criminal trial. Rather, it is an executive inquiry intended to determine whether the legal grounds exist for removing a Federal Reserve official before the expiration of her term.
Under the memorandum, the hearing will take place at the White House and last no longer than four hours. It will be closed to the public but transcribed, creating a formal record of the evidence considered and the questions asked.
Cook may submit a written statement addressing the allegations at least three days before the hearing. She may also present documentary evidence, legal arguments and written witness statements, while the committee is authorized to question her or her attorneys about the information provided.
The administration must supply Cook with the evidence it intends to consider before the hearing. Afterward, she will have until Nov. 10 to submit an additional written response before the committee completes its findings and sends a recommendation to Trump.
The committee will then prepare written findings of fact and conclusions of law addressing whether Cook’s conduct meets the statutory definition of cause for removal. The memorandum does not set a specific deadline for the final recommendation but directs the panel to submit its conclusions as soon as practicable after receiving Cook’s post-hearing statement.
Trump’s instructions also permit the committee to adjust its procedures when necessary, provided Cook receives adequate notice of any changes. Whether those arrangements satisfy the requirements identified by the Supreme Court could become an issue in further litigation.
The Associated Press reported Friday that Cook’s attorneys are evaluating the administration’s proposed procedures and remain concerned that the president has already reached a conclusion about the allegations.
Abbe Lowell and Norm Eisen, who represent Cook, expressed skepticism about the legitimacy of the process and whether it would provide a meaningful opportunity to contest the accusations.
They said they have “grave doubts that this ‘hearing’ is a legitimate one that would conform to the law,” citing Trump’s previous statements about removing Cook regardless of the outcome of additional proceedings.
“We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box checking exercise,” Lowell and Eisen said.
The attorneys nevertheless indicated that Cook intends to defend herself and challenge the administration’s allegations through the process if it provides a legitimate opportunity to present evidence.
They added that Cook “welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her.”
The dispute stems from mortgage applications Cook completed several years before joining the Federal Reserve. Federal Housing Finance Agency officials alleged in 2025 that she made conflicting representations about properties in Michigan and Georgia, raising questions about whether she improperly identified more than one residence as her primary home.
Mortgage lenders frequently distinguish between primary residences, second homes and investment properties because those classifications can affect interest rates, down payment requirements and other loan conditions. Knowingly providing materially false information to obtain a mortgage can carry legal consequences, depending on the circumstances and applicable law.
However, inconsistent statements in mortgage documents do not automatically establish criminal fraud. Investigators must consider whether a representation was knowingly false, whether it was material to the transaction and whether the available evidence satisfies the relevant legal requirements.
Cook has disputed the allegations and maintained that the administration has no lawful basis to remove her. Her attorneys have characterized the mortgage-document discrepancy as an inadvertent oversight rather than an intentional effort to deceive lenders.
The transactions occurred in 2021, before Cook was appointed to the Federal Reserve by President Joe Biden in 2022. She was subsequently reappointed in 2023 to a term extending through January 2038.
The timing of the alleged conduct is significant because the administration is attempting to determine whether actions taken before Cook joined the central bank can qualify as cause for removing her from a position protected by federal statute.
The Federal Reserve Act provides that members of the Board of Governors are appointed for staggered 14-year terms, subject to removal by the president for cause. The statute is intended to limit the ability of a president to replace policymakers simply because they disagree with the administration’s preferred interest-rate decisions.
Unlike Cabinet secretaries and many other executive branch officials, Federal Reserve governors do not ordinarily serve at the president’s pleasure. Their fixed terms and statutory removal protections are components of the central bank’s institutional independence.
Those protections have become central to Trump’s dispute with Cook. The president previously attempted to dismiss her in August 2025 after the allegations were raised publicly, arguing that the mortgage documents demonstrated conduct incompatible with continued service on the board.
Cook challenged the dismissal in federal court, maintaining that the president lacked a valid statutory basis for her removal and had not provided adequate notice or an opportunity to respond before attempting to terminate her appointment.
The case eventually reached the Supreme Court, which ruled in June 2026 that Cook could remain in her position because the administration had failed to provide the procedural protections necessary before removing a Federal Reserve governor.
The justices’ decision did not establish that a sitting governor could never be dismissed, nor did it resolve whether the mortgage allegations would ultimately qualify as cause under federal law.
Instead, the ruling required the administration to follow an appropriate process and provide Cook an opportunity to answer the accusations before a removal decision could take effect.
The Court also left open the possibility that Trump could renew his effort if he complied with those requirements. The administration subsequently sent Cook formal notice that the president was considering her removal and allowed her time to respond.
Cook submitted a written defense disputing the allegations and arguing that they did not provide a lawful basis for dismissal. The new committee and November hearing represent the next stage of that process.
According to reporting by CBS News on the renewed investigation, the committee will focus on whether the alleged mortgage statements meet the legal definition of cause required to remove a governor, rather than independently determining criminal liability.
Legal specialists have questioned whether alleged misconduct predating a Federal Reserve appointment can justify removal, particularly when the official has not been charged with or convicted of a crime.
Others have noted that the governing statute does not comprehensively define cause, leaving courts to determine how the standard applies to particular allegations.
The distinction between an executive removal proceeding and a criminal prosecution is important. The administration may argue that conduct raises questions about an official’s fitness for public office without obtaining a criminal conviction, but any removal decision would still need to satisfy the applicable legal requirements.
Cook’s attorneys are expected to argue that the accusations do not meet that threshold and that the president’s repeated statements demonstrate a predetermined effort to remove her.
Warren, who serves as the senior Democrat on the Senate Banking Committee, condemned the latest action as an attempt to circumvent the Supreme Court’s ruling and weaken the central bank’s independence.
She accused Trump of convening “an illegitimate show trial” designed to obtain the result the administration was previously unable to secure through litigation.
The Massachusetts senator has repeatedly criticized efforts to influence Federal Reserve personnel and interest-rate decisions, arguing that the central bank must be able to make monetary policy without political retaliation against its officials.
Her response reflects a broader concern among some lawmakers and economists that allowing presidents to remove governors over contested allegations could weaken the statutory protections intended to insulate monetary policy from immediate political demands.
The White House maintains that its actions concern the legal standards governing federal officials and allegations of dishonesty, not a disagreement over interest rates.
Nevertheless, the investigation is taking place amid a prolonged dispute between Trump and the Federal Reserve over the direction of monetary policy.
The president has repeatedly argued that the central bank should reduce borrowing costs, saying elevated interest rates place unnecessary pressure on households, businesses and the federal government’s financing expenses.
Federal Reserve officials have maintained that their decisions must account for inflation, employment conditions and economic stability rather than short-term political preferences.
The tension has continued under Federal Reserve Chair Kevin Warsh, whom Trump appointed earlier this year. The central bank raised its benchmark interest rate in September, a decision that frustrated administration officials who had favored lower borrowing costs.
Cook is one of the voting members of the Federal Open Market Committee, the body responsible for setting the central bank’s principal short-term interest-rate target. The committee includes members of the Board of Governors and representatives of regional Federal Reserve banks.
Although a single governor cannot determine monetary policy independently, the composition of the board matters because governors participate in interest-rate decisions, bank supervision and other central bank responsibilities.
Removing Cook would create a vacancy that Trump could seek to fill through the nomination process, subject to Senate confirmation. A replacement could influence future monetary policy discussions and regulatory decisions, although the outcome would depend on the views of the nominee and other committee members.
Those consequences have added significance to the legal dispute because the White House is pursuing Cook’s removal at a time when it has publicly criticized Federal Reserve decisions.
The administration’s broader disagreements with the central bank have also involved former Chair Jerome Powell, who faced a criminal investigation related to cost overruns in a Federal Reserve renovation project.
The investigation prompted questions about whether the Justice Department was being used to pressure central bank officials, although administration representatives defended the inquiry as a legitimate examination of government expenditures.
A government watchdog subsequently cleared Powell of criminal wrongdoing in connection with the project, and Attorney General Todd Blanche said the Justice Department would not reopen the investigation.
Those developments form part of the wider debate about presidential oversight of the Federal Reserve and the limits of executive authority over independent institutions.
The Federal Reserve occupies a distinctive position within the federal government. It was established by Congress in 1913 and carries out monetary policy responsibilities that can have significant consequences for inflation, employment, financial markets and consumer borrowing costs.
Its governors are appointed by the president and confirmed by the Senate, but their lengthy terms are designed to extend beyond individual presidential administrations.
The structure does not place the central bank entirely outside democratic oversight. Congress establishes its legal authority, receives testimony from Federal Reserve leaders and can amend the statutes governing its operations.
The president also influences the institution through appointments when board vacancies arise.
However, restrictions on removing sitting governors are intended to reduce the possibility that monetary policy decisions will be driven by direct threats to officials’ employment.
That principle is now being tested by a dispute involving allegations of conduct unrelated to Cook’s work at the central bank.
The administration argues that the president must be able to dismiss officials who cannot be trusted to comply with the law. Cook’s legal team maintains that the accusations are unsubstantiated and that the attempted dismissal is inconsistent with the protections Congress established for Federal Reserve governors.
The Supreme Court’s June decision required a meaningful opportunity for Cook to respond, but questions remain about what procedural safeguards are necessary and whether the committee established by Trump satisfies them.
The planned hearing is scheduled to take place privately rather than in a courtroom or before Congress. Cook may be accompanied by legal counsel, but the members conducting the examination are senior administration officials appointed by the president seeking her removal.
The memorandum does not provide for an independent judge to preside over the hearing, and it permits the committee to seek assistance from Justice Department personnel.
The committee will ultimately recommend whether the president has cause to remove Cook, leaving Trump to decide how to proceed after reviewing the findings.
Any renewed removal decision could prompt additional litigation, potentially returning the dispute to federal courts and eventually the Supreme Court.
Such proceedings would likely focus on the evidence supporting the allegations, the legal meaning of cause and whether Cook received the process required by federal law and the Court’s earlier ruling.
The November timetable also places the hearing shortly after the midterm elections, although the administration has not identified the election schedule as a reason for selecting the date.
Cook’s lawyers will have the opportunity to review the committee’s evidence and determine how to present her defense before the hearing. Their public statements suggest that they intend to challenge both the factual allegations and the legitimacy of the procedures.
The White House has not announced any decision to remove Cook following the establishment of the inquiry. The committee must first complete its review and submit a recommendation.
For now, Cook remains a member of the Federal Reserve Board of Governors and continues to hold the position to which she was appointed.
The next major development is expected Nov. 5, when the committee convenes at the White House to examine the mortgage allegations. Cook will then have until Nov. 10 to provide a final written response before the panel prepares its conclusions.
The outcome could determine whether Trump makes another attempt to dismiss a sitting Federal Reserve governor and whether the courts must further clarify the limits of presidential authority over the central bank.
The dispute is unprecedented in the Federal Reserve’s history, not because federal officials are immune from investigation, but because no president has previously succeeded in removing a sitting governor under the statutory cause standard.
Trump’s committee has been directed to determine whether the evidence against Cook meets that standard. Cook denies wrongdoing and is preparing to challenge the allegations, while lawmakers and legal specialists continue debating whether the administration can conduct a sufficiently independent proceeding.
Until the committee reaches its findings and any subsequent legal challenges are resolved, the effort to remove Cook remains an unresolved confrontation over executive authority, statutory protections and the independence of the institution responsible for U.S. monetary policy.
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