United States President Donald Trump has launched a new investigation into Federal Reserve Governor Lisa Cook, setting up a White House committee to examine allegations of false statements on mortgage applications. The move comes weeks before the congressional elections and follows Trump's long-standing efforts to remove Cook, whom he accuses of political interference in the Fed's interest rate policies.
Trump established a committee to investigate the allegations against Cook and ordered a closed, four-hour hearing at the White House on November 5. The hearing falls just two days after the elections that could determine control of the US House and Senate. Cook's lawyers maintain that there is no legal basis for her removal and that any fair hearing would clear her name. They have engaged with the White House about the process.
The Supreme Court ruled earlier in 2026 that the president cannot remove a Fed governor at will and must follow a clear process. Cook was appointed to the Fed board in 2022 by former President Joe Biden and was re-appointed in 2023 to a term lasting until 2038. She has consistently voted with the majority on the Fed’s policy-making committee, which recently raised interest rates under the leadership of Kevin Warsh, Trump's appointee.
Critics, including Senator Elizabeth Warren, have condemned the hearing as a “kangaroo court” and part of Trump’s attempt to undermine the independence of the Federal Reserve. Analysts suggest that Trump's actions could be counterproductive to his goal of lowering interest rates.