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TRUMP LAUNCHES NEW PROBE INTO FEDERAL RESERVE GOVERNOR LISA COOK IN PUSH TO REMOVE HER
US President Donald Trump has launched a fresh investigation into Federal Reserve Governor Lisa Cook over allegations that she made false statements o...
By Wavers News
Lisa Cook, a member of the US Federal Reserve Board of Governors, departs the Supreme Court in Washington on January 21, 2026.
The inquiry will examine whether the allegations provide sufficient grounds for Cook’s dismissal, following a previous attempt by Trump to remove her from office that was challenged in court.
Under a presidential memorandum, a committee of inquiry will question Cook during a closed-door hearing at the White House on November 5. The hearing is expected to last no more than four hours, and the committee will subsequently submit its findings and recommendations to the president.
Cook has denied wrongdoing and maintains that there is no legal basis for her removal.
WHITE HOUSE SETS NOVEMBER HEARING
Trump established the committee to investigate claims that Cook made false statements in connection with one or more mortgage documents.
The three-member committee comprises 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.
The committee has been directed to examine the available evidence and determine whether there is sufficient cause to remove Cook from her position on the Federal Reserve’s Board of Governors.
Cook must appear at the November 5 hearing, where she will be questioned about the allegations. She will also be permitted to present written evidence, legal arguments and statements from witnesses in her defence.
The hearing will not be open to the public, although an official transcript will be produced.
Before the hearing, the committee is expected to provide Cook with the evidence it intends to consider. She may also submit a written statement after the proceedings, with a deadline of November 10.
The committee will then prepare findings of fact and legal conclusions before recommending whether Trump has grounds to remove her.
ALLEGATIONS CENTRE ON MORTGAGE APPLICATIONS
The dispute dates back to allegations that Cook identified two different properties as her primary residences in mortgage applications submitted in 2021.
Mortgage arrangements for primary residences can offer more favourable terms than those available for second homes or investment properties. The allegations have therefore raised questions about whether the information provided in the applications was accurate.
Trump first attempted to remove Cook in August 2025 after the allegations emerged.
Cook has denied committing mortgage fraud. Her lawyers have argued that any inaccurate description of a property was an inadvertent error rather than a deliberate attempt to obtain financial benefits improperly.
Her legal team has also maintained that the allegations do not establish a legitimate basis for terminating her appointment.
Cook has not been criminally charged over the matter.
COOK'S LAWYERS QUESTION THE FAIRNESS OF THE PROCESS
Cook’s lawyers have said they are evaluating whether the proposed hearing will provide a genuine opportunity for their client to respond to the allegations.
They have indicated that Cook is prepared to present the facts in her defence and demonstrate why she believes there is no legal justification for removing her from office.
The legal team has also raised concerns about whether the inquiry will be conducted objectively, given Trump’s previous efforts to dismiss her.
The outcome could prove significant because the committee’s recommendation will help determine the next steps in the president’s attempt to remove the Federal Reserve governor.
SUPREME COURT RULING COMPLICATES TRUMP'S EFFORT
Trump’s latest move follows a Supreme Court ruling in June that allowed Cook to remain in her position while her legal challenge to the attempted dismissal continued.
The ruling addressed the procedures that must be followed when a president seeks to remove a Federal Reserve governor. It indicated that the president must provide adequate notice of the allegations and give the official a meaningful opportunity to respond.
The decision did not prevent Trump from trying again through a process that meets the required legal standards.
The newly established committee appears designed to address those procedural requirements by formally examining the allegations and allowing Cook to present her defence.
However, the inquiry does not itself establish that the allegations are true or that Cook can legally be removed.
FEDERAL RESERVE INDEPENDENCE AT THE CENTRE OF THE DISPUTE
The confrontation has intensified debate about the independence of the Federal Reserve, which sets monetary policy for the United States.
The central bank makes decisions on interest rates and other monetary measures with significant consequences for borrowing costs, employment, inflation and economic growth.
Trump has repeatedly pushed for lower interest rates, while the Federal Reserve’s policy decisions have not always aligned with his preferences.
Cook is one of the voting members of the Federal Open Market Committee, which determines the direction of US monetary policy.
The effort to remove a sitting governor has consequently raised concerns about whether political pressure could affect the central bank’s ability to make decisions independently.
The latest inquiry will test the legal procedures governing presidential authority over Federal Reserve officials, as well as the protections intended to prevent monetary policy decisions from being controlled directly by political considerations.
WHAT HAPPENS NEXT?
The committee is scheduled to hear Cook’s response on November 5 and submit its findings to Trump after considering the evidence and any post-hearing statement.
Its recommendation will address whether there is sufficient legal cause for her removal. The process could lead to further legal disputes if the administration attempts to dismiss her and Cook challenges that decision.
For now, Cook remains in office, and the allegations against her have not resulted in a criminal charge.
The outcome of the inquiry could have implications beyond Cook’s position, particularly for the legal limits on presidential authority and the independence of the US central bank.