The November 5 hearing is likely to become a focal point in the continuing legal and political dispute, with implications extending beyond Cook’s position to the broader question of Federal Reserve independence.
President Donald Trump has escalated his efforts to remove Federal Reserve Governor Lisa Cook by establishing a “committee of inquiry” to investigate allegations that she made false statements on mortgage applications.
In a written memorandum issued on Friday (October 9), Trump announced that the inquiry would include a hearing at the White House on November 5, which Cook “shall” attend to answer questions from the committee. The hearing will not be open to the public, but a transcript will be published, according to the memorandum.
The move marks another significant development in Trump’s campaign against Cook and is likely to intensify concerns over the independence of the US central bank.
Trump defends his decision to investigate Cook
Trump justified the inquiry by arguing that his responsibility as president includes ensuring that government officials comply with the law.
“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,” Trump wrote in the memorandum.
The committee will examine whether the allegations against Cook establish sufficient “cause” for her removal, as required under the law governing the Federal Reserve.
Cook denies wrongdoing, Attorneys consider response
Cook has denied any wrongdoing and has not been charged with a crime. Her attorneys, Abbe Lowell and Norman Eisen, said they were evaluating whether she should appear at the November 5 hearing and respond to the allegations.
“We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box checking exercise,” the attorneys said in a statement.
They added that Cook welcomed the opportunity to present evidence in her defence.
“Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her,” they said.
The allegations stem from mortgage applications submitted in 2021, in which Cook allegedly identified two different properties as her primary residence. Mortgages on primary residences can carry lower interest rates and other favourable terms.
Cook’s lawyers have previously described the issue as an inadvertent error, noting that one of the properties was identified as a vacation home in other documents.
“An inadvertent error is not fraud, as the President and a third of his cabinet should know because they reportedly did the same thing,” Lowell and Eisen said in August.
Committee includes Trump Administration officials
The committee of inquiry will include three members: Kevin Hassett, Trump’s top economic adviser; Keith Sonderling, acting director of the Office of Government Ethics; and Andrea Lucas, chair of the Equal Employment Opportunity Commission.
Hassett has frequently echoed Trump’s criticism of the Federal Reserve. Sonderling has also been appointed by Trump to lead the Labor Department, while Lucas was appointed to her position in November 2025.
The composition of the panel could draw further scrutiny because its members hold positions within the administration and include an adviser who has publicly aligned with the president’s criticism of the central bank.
Federal Reserve independence under renewed pressure
Trump’s campaign against Cook has intensified broader concerns about political interference in monetary policy. The President has repeatedly urged the Federal Reserve to lower interest rates, while the central bank raised its key rate on September 16, according to the account of the decision.
The rate increase was unanimous, despite Trump and some of his economic advisers blaming the Fed’s rate-setting committee for the decision.
Cook is one of the 12 voting members of the Federal Open Market Committee, which determines US monetary policy. She was appointed by former President Joe Biden and is the first Black woman to serve on the Federal Reserve’s seven-member Board of Governors.
The ruling included a footnote stating that nothing prevented the President from “trying again,” provided Cook received proper notice and an opportunity to respond to the allegations.
However, the court also indicated that removal for cause would require an alleged offence that was serious and related to an official’s duties.
(With AP inputs)
