Trump forms panel to investigate Fed Governor Lisa Cook ahead of hearing

President Donald Trump signed a memorandum on October 7 creating a "committee of inquiry" to investigate whether Federal Reserve Governor Lisa Cook made false statements on mortgage applications. The three-member panel comprises White House economic adviser Kevin Hassett, acting Office of Government Ethics head Keith Sonderling, and EEOC Chair Andrea Lucas. No independent outside arbiters were named.

A closed-door hearing is scheduled for November 5 at the White House, two days after the midterm elections. The committee may consult with the Department of Justice and other agencies during its inquiry. A transcript of the proceeding will be published, though the hearing itself will not be public.

“If it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board.”

Cook's attorneys, Abbe Lowell and Norm Eisen, expressed skepticism about the panel's legitimacy, citing Trump's prior statements that he intends to fire Cook regardless of the evidence. They said Cook welcomes the chance to present facts and clear her name, adding that any objective review would find no mortgage fraud.

The move marks the first time in the Fed's 113-year history that a president has sought to remove a governor. Trump has repeatedly pressed the central bank to cut interest rates and recently blamed a "hostile" board for the failure to do so. Cook, a Biden appointee, is the first Black woman to serve on the Fed's board of governors.