President Donald Trump opened a new chapter in his effort to oust Federal Reserve Governor Lisa Cook on Friday, establishing a White House "committee of inquiry" to investigate allegations that she made false statements on mortgage applications — and ordering her to appear for a closed-door hearing on November 5 to answer the committee's questions.

Table of Contents

  1. The announcement
  2. How the hearing will work
  3. A battle already tested in court
  4. Why Fed independence is at stake
  5. Key takeaways
  6. Frequently Asked Questions
  7. Sources
  8. Related from Chronicle

The announcement

The inquiry was announced in a presidential memorandum dated October 7 and published on the White House website on Friday, according to Reuters. The notice tasks a three-member committee with investigating the allegations against Cook and reporting back to the president on whether there is "cause" for her removal under federal law.

Al Jazeera reported that the committee will include the assistant to the president for economic policy, the chair of the Equal Employment Opportunity Commission and the director of the Office of Government Ethics. According to the Wall Street Journal, the economic-policy seat is held by National Economic Council director Kevin Hassett, one of Trump's closest economic advisers.

In the memo, Trump wrote that "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," and warned Cook: "The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve."

How the hearing will work

The extraordinary procedure reads like a disciplinary proceeding directed at one of the world's most powerful central bankers. According to the memorandum:

  • Cook "shall" appear in person at the White House on November 5 and be "examined" by the committee, with her own legal counsel permitted.
  • She may submit a written statement, plus written evidence and witness statements, at least three days before the hearing.
  • Department of Justice lawyers will question her at the hearing, which will last no more than four hours.
  • The hearing will be closed to the public but will be transcribed, and the committee must submit written findings of fact and conclusions of law to the president.

Fox News reported that the allegations at the heart of the case — that Cook made false statements in connection with three home loans — surfaced after Federal Housing Finance Agency chief Bill Pulte accused her of mortgage fraud and referred the matter to the Justice Department. Cook has denied any wrongdoing, has not been charged with a crime, and previously said she has "no intention of being bullied to step down."

A battle already tested in court

This is not Trump's first attempt to remove Cook — it is his second, and it follows a bruising legal defeat. Trump tried to fire her in August 2025, triggering a court battle that reached the Supreme Court. In June 2026, the court blocked her removal in a 5-4 ruling that found she had not been given adequate notice or an opportunity to respond to the allegations.

That ruling left the door open: the court said nothing prevented Trump from "trying again" as long as Cook received proper process. The new committee — with its formal hearing, written statement and transcribed record — appears to be the process the White House has designed to satisfy that requirement, according to the Associated Press. The case against her remains before a federal district court.

Cook, the first Black woman to serve on the Fed's Board of Governors, was appointed in 2022 by former President Joe Biden and reappointed in 2023 to a term that runs until 2038.

Why Fed independence is at stake

The move lands at a sensitive moment for the central bank. The Fed raised its key interest rate in September — its first increase in three years — in a unanimous vote of the 12 voting members, as Chronicle reported. Trump has spent months demanding the opposite, pressing the bank to cut rates, and has blamed the rate-setting committee for the hike.

Economists broadly view the Fed's independence from the White House as essential for setting interest rates free of political considerations. The spectacle of a sitting Fed governor summoned to the White House for a disciplinary hearing is without modern precedent — and, as the AP noted, it will likely renew concerns about threats to that independence just as markets are digesting a rate hike led by Chairman Kevin Warsh, a Trump appointee himself.

Key takeaways

  • Trump has created a three-member White House committee to investigate Fed Governor Lisa Cook over mortgage-fraud allegations she denies.
  • Cook must appear at a closed-door White House hearing on November 5, to be questioned by DOJ lawyers; the session will be transcribed.
  • The move follows a June Supreme Court ruling that blocked her firing but left the door open for Trump to try again with proper process.
  • Markets are watching for what the inquiry means for Fed independence, weeks after the central bank raised rates against Trump's wishes.

Frequently Asked Questions

Who is Lisa Cook?

Lisa Cook is a member of the Federal Reserve's Board of Governors and one of 12 voting members on the rate-setting Federal Open Market Committee. Appointed by Joe Biden in 2022 and reappointed in 2023, she is the first Black woman to serve on the Fed's board. Her term runs until 2038.

What is Trump accusing her of?

The White House alleges Cook made false statements in connection with mortgage applications — accusations first leveled by Federal Housing Finance Agency chief Bill Pulte, who referred the matter to the Justice Department. Cook denies any wrongdoing and has not been charged with a crime.

Why couldn't Trump just fire her before?

The Supreme Court ruled in June 2026 that Trump could not remove a Fed governor without adequate cause and proper process — she had not been given sufficient notice or an opportunity to respond. The new committee and hearing appear designed to build that process.

What happens after the November 5 hearing?

The committee will submit written findings of fact and conclusions of law to Trump and recommend whether there is "cause" to remove Cook. Any removal attempt would almost certainly face another round of litigation, with the case still pending in federal district court.

Sources

Related from Chronicle