President Donald Trump has established a “committee of inquiry” to investigate Federal Reserve Governor Lisa Cook amid allegations that she made false statements in mortgage applications, escalating his efforts to remove her from the central bank’s board. The president announced the initiative in a memorandum dated Friday, specifying that Cook is required to attend a hearing at the White House on November 5 to respond to the claims. While the hearing will not be open to the public, a transcript will be released afterward.
The move marks an unprecedented development in the Federal Reserve’s 113-year history, as no president before Trump has sought to dismiss a sitting Fed governor. Cook, who was appointed by former President Joe Biden and is the first Black woman to serve on the board, has denied any wrongdoing. Her legal team characterized the accusations as based on an “inadvertent error,” maintaining that it does not constitute fraud, and noted that similar mistakes have occurred within the current administration.
Trump’s memorandum frames his actions as part of his duty to ensure lawful conduct among federal officials, stating that firing subordinates who are not trustworthy is part of his presidential responsibilities. The inquiry committee will be chaired by Kevin Hassett, the president’s chief economic adviser and a vocal critic of the Federal Reserve’s recent policies, including rate increases. Other members include Keith Sonderling, acting director of the Office of Government Ethics and interim head of the Labor Department, and Andrea Lucas, chair of the Equal Employment Opportunity Commission.
The controversy stems from allegations that Cook declared two properties as her primary residence on mortgage applications in 2021—a designation that can affect loan terms such as interest rates. Cook’s attorneys have pointed out that she listed one property as a vacation home in other documents and has not been charged with any crime. They are currently evaluating whether to participate in the upcoming hearing, emphasizing that Governor Cook is ready to present evidence to clear her name.
This inquiry and Trump’s attempts to remove Cook follow a series of actions targeting prominent Black officials, including New York Attorney General Letitia James and General Charles Q. Brown, former chairman of the Joint Chiefs of Staff, further intensifying discussions about political motivations behind the president’s moves.
The dispute over Cook’s tenure occurs amid broader tensions between the White House and the Federal Reserve. Trump has repeatedly called for cuts to the central bank’s key interest rates, while the Fed, under Chairman Kevin Warsh—a Trump appointee—recently raised rates instead. Cook is a member of the Fed’s policy-setting committee, which voted unanimously on September 16 to increase rates, following guidance that higher rates were likely.
Cook’s position was reaffirmed earlier this year when the Supreme Court ruled that she could remain in her role despite Trump’s prior attempt to remove her in 2025. The Federal Reserve declined to comment on the latest developments.