President Donald Trump has established a committee to investigate mortgage fraud allegations against Federal Reserve Governor Lisa Cook and ordered her to appear at a White House hearing on Nov. 5, 2026. Lawyers for Cook, Abbe Lowell and Norm Eisen, stated on Friday, Oct. 9, that an objective hearing would demonstrate she did not commit fraud and that there is no legal basis for her removal. The move follows the president's efforts to oust Cook, a Biden appointee, from the central bank’s Board of Governors.
The investigation follows a June 2026 Supreme Court decision that allowed Cook to remain in her position while contesting a previous attempt by the president to fire her. Chief Justice John Roberts wrote that the previous attempt failed to give Cook adequate notice or an opportunity to defend herself, though he noted the process did not require a full judicial trial. Trump cited this ruling in a memorandum dated Wednesday, Oct. 7, stating the new committee will determine if there is "cause" for her removal as defined under the Federal Reserve Act.
The committee will include Kevin Hassett, director of the National Economic Council, the chair of the Equal Employment Opportunity Commission, and the director of the Office of Government Ethics. The hearing will be closed to the public, though Cook is permitted to submit a written statement and bring legal counsel. These proceedings stem from August 2025 allegations by Federal Housing Finance Agency Director Bill Pulte, who claimed Cook misrepresented information on loan applications. Cook has denied these claims, characterizing them as a pretext for removal.
No prior president has attempted to fire a Federal Reserve governor. While the immediate legal cost is borne by the executive branch and Cook’s private legal team, the broader impact concerns the legal precedent for executive authority over independent regulatory bodies. If Cook is removed, it would allow the president to appoint a successor to a term that typically lasts 14 years.
A closed-door White House hearing is scheduled for Nov. 5, 2026. One day later, on Nov. 6, the Justice Department and Cook’s lawyers are scheduled to file a joint report with a federal judge in Washington D.C. to determine the next steps for her original lawsuit. Depending on the committee's findings and subsequent court rulings, the process could result in a vacancy on the Federal Reserve Board or a renewed legal challenge regarding the definition of "cause" for removal. In the interim, Cook remains in her role as a voting member of the central bank.