President Donald Trump on Friday established a "committee of inquiry" to investigate allegations that Federal Reserve Governor Lisa Cook made false statements in mortgage applications — his latest move to remove her from the central bank's board.
A White House memo says Cook "shall" attend a hearing at the White House on November 5 that will not be open to the public, though a transcript will be published. The memo states: "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."
The committee will include National Economic Council head Kevin Hassett, Equal Employment Opportunity Commission chair Andrea Lucas and acting Office of Government Ethics director Keith Sonderling.
Cook denies the allegations
Cook has denied any wrongdoing and has not been charged with a crime. Her lawyers, Abbe Lowell and Norm Eisen, said they have "grave doubts" the hearing will be a legitimate process. The mortgage-fraud allegations have never been proven, and no charges have been filed against her.
The move follows a June Supreme Court ruling that allowed Cook to keep her job, with a footnote noting Trump could "try again" to remove her with proper notice and an opportunity to respond.
The stakes for the Fed
Cook is one of 12 voting members of the Federal Open Market Committee, which unanimously voted to lift interest rates on September 16 under Chairman Kevin Warsh. Trump has repeatedly demanded lower borrowing costs, and a successful removal would reshape the board of the central bank at a critical moment for monetary policy.
Sources:
- AP: Trump orders inquiry into Fed Governor Lisa Cook over mortgage allegations
- Barron's: New Panel to Investigate Fed's Cook Revives Questions About the Central Bank's Independence
- MarketWatch: Trump ramps up battle to fire Fed's Lisa Cook
A White House memo says Cook "shall" attend a hearing at the White House on November 5 that will not be open to the public, though a transcript will be published. The memo states: "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."
The committee will include National Economic Council head Kevin Hassett, Equal Employment Opportunity Commission chair Andrea Lucas and acting Office of Government Ethics director Keith Sonderling.
Cook denies the allegations
Cook has denied any wrongdoing and has not been charged with a crime. Her lawyers, Abbe Lowell and Norm Eisen, said they have "grave doubts" the hearing will be a legitimate process. The mortgage-fraud allegations have never been proven, and no charges have been filed against her.
The move follows a June Supreme Court ruling that allowed Cook to keep her job, with a footnote noting Trump could "try again" to remove her with proper notice and an opportunity to respond.
The stakes for the Fed
Cook is one of 12 voting members of the Federal Open Market Committee, which unanimously voted to lift interest rates on September 16 under Chairman Kevin Warsh. Trump has repeatedly demanded lower borrowing costs, and a successful removal would reshape the board of the central bank at a critical moment for monetary policy.
Sources:
- AP: Trump orders inquiry into Fed Governor Lisa Cook over mortgage allegations
- Barron's: New Panel to Investigate Fed's Cook Revives Questions About the Central Bank's Independence
- MarketWatch: Trump ramps up battle to fire Fed's Lisa Cook
