President Donald Trump established a three-member White House committee on October 7 to investigate Federal Reserve Governor Lisa Cook. The memorandum, published Friday on the White House website, tasks the panel with gathering evidence that Cook made false statements to secure a mortgage.
Why It Matters
The move represents a renewed executive effort to remove a sitting Fed official following a June Supreme Court ruling that blocked Trump’s previous attempt to fire her. The committee’s work could reshape the balance of power between the White House and the central bank, particularly regarding interest rate policy.
What Happened
The presidential memorandum names Kevin Hassett, Andrea Lucas, and Keith Sonderling as the committee members. Their mandate is to determine if Cook meets the legal standard for removal established by the Supreme Court last year. The panel may consult with executive branch personnel, including officials from the Department of Justice.
A closed-door hearing is scheduled for November 5 at the White House, two days after the midterm elections. Cook is required to attend the questioning and comply with document requests. She may submit written statements before the hearing and up to five days afterward.
By The Numbers
- 3: Number of committee members appointed by the president.
- Nov. 5: Date of the scheduled closed-door hearing at the White House.
- 5 days: Window after the hearing for Cook to submit a written statement.
Zoom Out
The investigation stems from allegations by Bill Pulte that Cook lied on a mortgage application. Trump previously attempted to dismiss Cook based on these claims, but the Supreme Court ruled in June that he lacked cause for removal at that time. The new committee is specifically tasked with finding evidence that satisfies the court’s stricter standard.
The conflict extends beyond Cook. Trump has clashed with former Fed Chair Jerome Powell over interest rate decisions. The administration previously used legal investigations to pressure Powell, including a probe into his oversight of a Federal Reserve headquarters renovation.
What’s Next
The committee will recommend to the president whether there is sufficient cause to remove Cook from her post. Cook’s attorneys, Abbe Lowell and Norm Eisen, have challenged the process. They stated that an objective investigation would show no wrongdoing and expressed doubts about the legitimacy of the hearing given the president’s prior statements.
“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.
Cook’s legal team responded sharply. “In light of the President’s repeated statements that he has already decided to fire Governor Cook – regardless of the facts and evidence – we have grave doubts that this ‘hearing’ is a legitimate one that would conform to the law,” they wrote.
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