President Trump has set up a special committee to look into claims that Federal Reserve Governor Lisa Cook made false statements. This follows accusations from the White House regarding mortgage fraud.
This action marks a significant escalation in Trump’s ongoing attempts to dismiss Cook, who was nominated by former President Biden, especially after the Supreme Court blocked his efforts to do so back in June.
In a statement released Wednesday and shared on the White House’s social media, Trump emphasized, “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.”
He also mentioned that the committee would investigate the allegations against Cook to determine if there is enough cause for her removal.
The committee will be composed of key figures such as Kevin Hassett, Trump’s chief economic advisor; Keith Sonderling, the acting head of the Office of Government Ethics; and Andrea Lucas, who chairs the Equal Employment Opportunity Commission.
According to the announcement, an in-person hearing will take place at the White House on Nov. 5 to review the allegations against Cook.
Cook’s attorneys, Abbe Lowell and Norm Eisen, expressed their concerns, stating, “In light of the President’s repeated statements that he has already decided to fire Governor Cook – regardless of the facts and evidence – we have grave doubts that this ‘hearing’ is a legitimate one that would conform to the law.” They further argued that if the process is fair, it would conclude that Cook did not commit any mortgage fraud, thus leaving no reason for her removal from the Federal Reserve Board.
Her legal team also mentioned they are in discussions with the White House to assess if the hearing could be a genuine one, rather than just a formality. Cook, they noted, is eager to clear her name.
Trump has been vocally critical of former Fed Chair Jerome Powell for not reducing interest rates quickly enough, labeling him with various unflattering terms. However, after appointing Kevin Warsh as Powell’s replacement, Trump shifted his focus to blaming the “hostile” Fed board for recent interest rate hikes.
Initially, Trump attempted to remove Cook on August 25, 2025, following allegations from Federal Housing Finance Agency Director Bill Pulte that she was involved in mortgage fraud.
Cook has denied the accusations, calling them “baseless,” and has filed a lawsuit to prevent her removal.
The Supreme Court, in a 5-4 ruling, sided with Cook, indicating that a dismissal from the White House could set a dangerous precedent by politicizing policy decisions.
Interestingly, while the court ruled in favor of Cook, it also established in a separate case on the same day that Trump could dismiss officials at other independent regulatory agencies for any reason.
At that time, Trump claimed the Supreme Court’s decision was merely procedural and reiterated his commitment to taking swift action to ensure that individuals guilty of wrongdoing do not make crucial decisions affecting the country.
Some independent analyses have raised questions about Pulte’s mortgage fraud allegations, specifically regarding whether Cook claimed both her properties in Atlanta and Michigan as her “primary residence.” Reports indicate that Cook had designated her Atlanta home as a “vacation home.”
Cook was appointed to the Federal Reserve Board in May 2022.
