President Trump has ordered a White House committee to examine allegations that Lisa Cook, a Federal Reserve governor, made false statements on mortgage documents, and has summoned her to a closed hearing on Nov. 5. The panel's task is to advise him on whether there is cause to remove her from the central bank's board.
The memorandum, dated Wednesday and released Friday, hands the inquiry to three executive branch officials Trump appointed: Kevin Hassett, his top economic aide; Andrea Lucas, who chairs the Equal Employment Opportunity Commission; and Keith Sonderling, who is temporarily leading the Office of Government Ethics. Its members may consult the Justice Department and other agencies, and they are to report whether there is "cause" for Cook's removal under the governing provision of the Federal Reserve Act, as the Supreme Court construed it this year. The order names no outside or independent arbiter, CNBC noted.
In the memo, Trump cast the inquiry as part of his constitutional duty. "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," he wrote.
The session, two days after the midterm elections, is to be held at the White House, last no longer than four hours and be closed to the public but transcribed. Cook "shall appear" and can be questioned there by the committee, by its representatives and by her own counsel, and those representatives may include Justice Department personnel. She can make arguments and offer written evidence and statements from witnesses, and she may file a position statement if it arrives at least three days before the session. The committee must share the evidence it is considering with her beforehand and may require her to produce documents. After the hearing she has until Nov. 10 to submit a written statement, and the panel will then send Trump findings of fact, conclusions of law and a recommendation on removal.
The allegations date to August 2025, when Bill Pulte, director of the Federal Housing Finance Agency, accused Cook of mortgage fraud. Trump, pointing to what he described as a criminal referral from Pulte to the Justice Department, moved to fire her last year. Cook sued, a federal court temporarily barred her dismissal, and in June the Supreme Court allowed her to keep her job. The justices concluded that she had not been given proper due process but did not rule out a second attempt. According to the Associated Press, a footnote in the decision stated that Trump was not precluded from "trying again," provided Cook was properly notified and allowed to respond to the charges.
This past August, Dan Scavino, a senior White House aide, wrote to Cook that the president was again "considering" firing her over the mortgage allegations. Cook denies the accusations, and she has not been charged with any crime. NBC News has reported that documents it reviewed show she declared that a property cited in the allegations would be used as a vacation home rather than as her primary residence.
Her lawyers, Abbe Lowell and Norm Eisen, said in a statement that they had "grave doubts that this 'hearing' is a legitimate one that would conform to the law," citing what they called the president's repeated statements that he had already decided to fire her. "But 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," the statement continued. The lawyers added that they had engaged with the White House to assess whether the process could be genuine, and they said Cook "welcomes the opportunity to present the facts so she can clear her name."
Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, said in a statement that Trump "is convening an illegitimate show trial in his dangerous quest to illegally take over our nation's central bank." The Fed declined to comment.
Cook is one of 12 officials who vote on interest rates. The Fed raised its key rate on Sept. 16 in a unanimous vote under Chairman Kevin Warsh, whom Trump appointed this year. Trump, who wants lower borrowing costs, has blamed a "hostile" board for Warsh's failure to cut. The AP wrote that the demand for Cook's testimony is likely to renew concerns about the Fed's independence. The Federal Reserve Act lets a president remove a governor only for cause, and no president has ever dismissed a top Fed official.