Trump Forms Committee to Weigh Firing Fed Governor Lisa Cook

President Donald Trump said on Friday that he is setting up a committee to examine whether there is cause to remove Federal Reserve Governor Lisa Cook over mortgage fraud allegations, according to Theguardian. The move revives his effort to oust Cook after a June Supreme Court ruling held that her earlier firing was unconstitutional because he did not follow proper procedure.

Cook, who was appointed by Joe Biden in 2022 to a 14-year term and became the Fed’s first Black governor, has denied the allegations. A White House hearing is scheduled for 5 November, closed to the public but transcribed and published, where she will be able to submit a written statement and face questions from White House counsel and her own lawyers.

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Key facts

• Trump announced the committee on Friday, saying it would consult with justice department officials on whether there is “cause” for Cook’s removal.
• The in-person hearing is set for 5 November at the White House; Cook has until 10 November to follow up, per CNBC.
• CNBC reported that Trump appointed three people to the panel: Kevin Hassett, director of the National Economic Council; Keith Sonderling, acting director of the Office of Government Ethics and Labor secretary; and Andrea R. Lucas, chair of the Equal Employment Opportunity Commission.
• The Supreme Court ruled in June, in its 5-4 Trump v. Cook decision written by Chief Justice John Roberts, that Trump’s earlier firing of Cook was unconstitutional.
• Cook was fired in August 2025 after Trump said she listed two properties in Georgia and Michigan as her primary residence and failed to report rental income on her Atlanta property.

The legal path and its precedent

Under the president’s memo, the committee will weigh the evidence and Cook’s response, then recommend to Trump whether cause exists to remove her. The final call rests with the president and there is no deadline for it, CNBC reported. The Supreme Court did not require Trump to follow the committee model, though Chief Justice Roberts noted that President William Howard Taft convened a similar committee of inquiry in 1912 to consider removing two members of the Board of General Appraisers.

Cook’s legal team, Abbe Lowell and Norm Eisen, said she “welcomes the opportunity to present the facts so she can clear her name” but that they hold “grave doubts” the hearing would conform to law, according to CNBC and Theguardian. Her lawyers have repeatedly said the fraud claims rest on unrelated clerical errors and that the White House is “cherrypicking” facts.

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Why it matters

Congress designed the Fed as an independent, non-partisan institution, and economists broadly agree that a central bank insulated from politics is essential to economic stability. Cook remains a member in good standing and is expected to take part in the Fed’s interest-rate vote on 28 October; she would likely keep serving through any court challenges that follow the committee process.

The dispute unfolds with the Fed already under White House criticism: because of elevated inflation tied to the war in the Middle East, the bank voted to raise rates at its last meeting, drawing objections from the administration just over a month before the midterm elections.

What to watch

The 5 November hearing and the follow-up window closing on 10 November will produce the committee’s recommendation. If Trump decides to fire Cook, the question of what counts as “cause” is likely to return to the Supreme Court, a process that could take months.

This article is not financial advice; markets are volatile and uncertain.

Written by

Benjamin

Benjamin Carter covers business, finance, and the stock market for StockPil, focusing on the trends and data that matter to everyday investors.

Sources: The Guardian, Cnbc