Trump Initiates Inquiry Into Federal Reserve Governor Lisa Cook

On October 9, 2026, President Trump signed a memorandum establishing a committee of inquiry to investigate allegations that Lisa Cook, a member of the Federal Reserve Board of Governors, made false statements on mortgage documents. This marks the latest move in his ongoing efforts to remove Cook from her post with the central bank.

Details of the Committee of Inquiry

The newly formed committee will consist of three members: the assistant to the president for economic policy, the chair of the Equal Employment Opportunity Commission, and the head of the Office of Government Ethics. According to the memorandum, the committee will conduct an investigation into the claims against Cook and will report to President Trump whether there is cause to remove her from the Fed Board.

An in-person, non-public hearing has been scheduled at the White House for November 5. The hearing will be transcribed, and Cook will have the opportunity to submit a written position statement and appear at the proceeding. The committee may question Cook or authorize representatives, including personnel from the Department of Justice, to conduct questioning during the hearing.

Cook’s Response and Legal Representation

Cook's lawyers, Abbe Lowell and Norm Eisen, stated that she welcomes the opportunity to present the facts. They emphasized her intent to clear her name and demonstrate that there is no legal basis for her removal. However, they also expressed concerns about the objectivity of the hearing, given President Trump’s previous statements about already having made a decision to fire Cook.

"In light of the President's repeated statements that he has already decided to fire Governor Cook — regardless of the facts and evidence — we have grave doubts that this 'hearing' is a legitimate one that would conform to the law. 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 lawyers said in a statement.

Background: Allegations and Initial Removal Attempt

The allegations against Cook originated from claims by Bill Pulte, a senior member of Trump’s administration, that Cook made false statements on mortgage documents related to two properties before she joined the Federal Reserve. Following these accusations, Trump first attempted to remove Cook in the previous year.

Cook objected to her removal, arguing it violated federal law, which only permits a president to remove a member of the Fed board "for cause." This initiated a legal challenge, raising questions about the procedural protections available to board members.

Supreme Court Ruling and Renewed Efforts

In June, the Supreme Court ruled 5-4 in Cook’s favor, allowing her to continue serving while her legal challenge progressed. The majority opinion, written by Chief Justice John Roberts, held that Trump did not provide Cook with the required notice and opportunity to respond to the allegations prior to her removal. Roberts clarified that a Federal Reserve Governor needs notice of charges and an opportunity to respond in their defense — either through oral statements or written materials.

After this ruling, the White House sent another notice to Cook in August, restating the mortgage-fraud allegations and providing her with a deadline for response. Cook denied the accusations, stating that she has "never committed mortgage fraud." Her lawyer, Lowell, contended that firing her based on these allegations would "ignore the facts and the law."

Next Steps in the Fed Board Removal Process

The upcoming White House hearing on November 5 represents the next step in the legal and procedural process surrounding the potential removal of Lisa Cook from the Federal Reserve Board. The outcome of the committee of inquiry will determine whether President Trump has grounds to proceed with her removal, following both legal requirements and Supreme Court guidance.

Source: cbsnews.com.