US President Donald Trump has launched a fresh investigation into Federal Reserve Governor Lisa Cook as he renews efforts to remove her from the country’s central bank over allegations that she made false statements on mortgage applications.
The White House announced the new inquiry on Friday, October 9, following Trump’s longstanding push to dismiss Cook amid his broader campaign to exert greater influence over the Federal Reserve and pressure it to lower interest rates.
Trump has repeatedly accused the central bank of maintaining interest rates at levels he considers unnecessarily high, arguing that its decisions are influenced by political considerations.
In a notice published on the White House website, Trump said the investigation would examine the allegations against Cook and determine whether there were sufficient grounds for her removal.
“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 said.
According to a presidential memorandum dated October 7, a newly established committee will investigate the allegations and advise the president on whether there is legal cause to remove the Fed governor.
The committee is scheduled to hold a closed, in-person hearing at the White House on November 5. The session is expected to last four hours and will focus on the evidence and allegations against Cook.
The hearing will take place two days after congressional elections that will determine whether Trump’s Republican Party retains control of the House of Representatives and the Senate.
The outcome of the inquiry could have significant implications for the Federal Reserve, as Cook’s removal would create a vacancy on its seven-member Board of Governors.
Cook’s lawyers have rejected the allegations and maintained that there is no legal justification for dismissing her.
In a statement, her lawyers, Abbe Lowell and Norm Eisen, said an impartial hearing would establish that she did not commit mortgage fraud.
“Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her,” they said, adding that they had engaged with the White House over the proposed process.
Legal Battle Over Cook’s Removal
Trump first attempted to remove Cook in August 2025, making her the first Black woman to serve on the Federal Reserve Board and the first sitting Fed governor a US president had tried to dismiss.
Cook subsequently filed a lawsuit challenging the move, insisting she had done nothing wrong.
The legal dispute reached the US Supreme Court, which ruled earlier this year that a president could not remove a sitting Federal Reserve governor at will. The court said the president must follow a defined process establishing sufficient cause for removal and allowing the governor an opportunity to defend herself.
The ruling allowed Cook to remain in office while returning aspects of the case to a federal district court.
Last month, Judge Kia Cobb directed Trump’s and Cook’s lawyers to submit a joint proposal for the proceedings by November 6.
Cook was appointed to the Federal Reserve Board in 2022 by former President Joe Biden and reappointed in 2023. Her current term is scheduled to run until 2038.
She has consistently voted with the majority on the Federal Open Market Committee, which determines US monetary policy.
The report said the committee raised interest rates last month under the leadership of Kevin Warsh, whom Trump appointed to succeed Jerome Powell as Fed chair in May.
Concerns Over Federal Reserve Independence
Trump’s latest move has raised concerns among analysts about the independence of the Federal Reserve and the potential political pressure on its monetary policy decisions.
Evercore ISI analyst Krishna Guha suggested Trump might believe the Federal Reserve’s relatively hawkish policy position reflects resistance from board members he considers politically hostile, despite his appointment of Warsh as chair.
Guha warned that establishing the new inquiry could further threaten the central bank’s independence and prove counterproductive to Trump’s goal of securing lower interest rates.
The committee investigating Cook will include Trump’s chief economic policy adviser, Kevin Hassett; Equal Employment Opportunity Commission Chair Andrea Lucas; and acting Office of Government Ethics Director Keith Sonderling.
The committee members, their representatives or Department of Justice personnel will question Cook for no more than four hours.
According to the memorandum, the committee will make its recommendation to Trump on whether sufficient cause exists for Cook’s removal as soon as practicable after a November 10 deadline for her to submit a post-hearing statement.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticised the process, describing the planned hearing as a “kangaroo court.”
Warren also accused Trump of pursuing a dangerous effort to take control of the country’s central bank.
Trump has separately accused Powell of possible financial misconduct relating to renovations at Federal Reserve buildings. The allegations prompted a Department of Justice criminal investigation that has since been closed.
An independent watchdog agency rejected the allegations last month.
The latest inquiry into Cook marks another development in Trump’s efforts to reshape the Federal Reserve, with the outcome potentially affecting both the central bank’s leadership and the debate over its independence from political influence.
