President Donald Trump has escalated his efforts to remove Federal Reserve Governor Lisa Cook, setting up a White House hearing for November 5. The hearing, part of a broader inquiry, will examine allegations that Cook made false statements on mortgage applications in 2021. According to the memorandum issued on October 9, Cook is required to attend the closed-door hearing to answer questions from the committee. A transcript of the hearing will be published, though the proceedings will not be open to the public.
Trump justified the inquiry by asserting his responsibility to ensure government officials comply with the law. The committee will determine whether the allegations against Cook provide sufficient grounds for her removal. Cook, who denies any wrongdoing, has not been charged with a crime. Her attorneys, Abbe Lowell and Norman Eisen, are evaluating whether she should appear at the hearing, questioning the legitimacy of the process.
The allegations center on mortgage applications where Cook allegedly identified two different properties as her primary residence, which can secure lower interest rates. Her lawyers argue that the issue was an inadvertent error and not fraudulent. The committee of inquiry includes Kevin Hassett, Trump’s economic adviser, Keith Sonderling from the Office of Government Ethics, and Andrea Lucas from the Equal Employment Opportunity Commission.
Trump’s campaign against Cook has reignited concerns over the independence of the Federal Reserve. The president has frequently criticized the central bank’s interest rate policies, which are determined by the Federal Open Market Committee, where Cook serves as a voting member. The committee’s recent rate increase was unanimous, despite Trump’s opposition. Cook, appointed by former President Joe Biden, is the first Black woman to serve on the Federal Reserve’s Board of Governors.