Trump forms committee to examine whether Fed Governor Lisa Cook should be removed

US President Donald Trump has established a committee to investigate Federal Reserve Governor Lisa Cook over allegations of false statements or fraud connected to mortgages. Its purpose is to determine whether there is cause to remove her from the Fed board.

The committee was set out in a notice published on the White House website on Friday, 9 October 2026. A White House hearing on the allegations is scheduled for 5 November.

Cook's lawyers responded on Friday. They said a hearing that is "anything close to objective" would show she did not commit mortgage fraud and would leave no case for removing her, according to Reuters and The Guardian.

Then-President Joe Biden appointed Cook to the Fed board in 2022. Trump's effort to remove her began in August 2025, when he announced her removal over mortgage-related allegations. Cook sued and has remained on the board. The committee is Trump's latest attempt, following court rulings against his first one.

How the committee is reported to work

According to Al Jazeera, the committee has three members: the assistant to the president for economic policy, the chair of the Equal Employment Opportunity Commission and the director of the Office of Government Ethics. It will review evidence and report to the president. The Guardian reports it will consult Justice Department officials.

According to The Guardian, the hearing will be closed to the public, but a transcript will be published. Cook may submit a written statement and evidence. Al Jazeera reports the notice says she will be required to appear and answer questions. The reports do not say whether she will attend.

According to Al Jazeera, the allegations originated with Federal Housing Finance Agency Director Bill Pulte, who accused Cook of misrepresenting two properties on a 2021 mortgage application.

What is disputed

The Guardian and AP say Trump announced the committee on Friday. Al Jazeera says the White House announced it on Wednesday and published the notice on Friday.

The court history also differs. The Guardian reports the Supreme Court ruled in June that the firing was unconstitutional because proper procedure was not followed. Al Jazeera reports the court in June declined to let Trump remove Cook while litigation continues, and that the case is back in a district court.

What each side says

The Guardian quoted Trump's statement on the White House website: "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."

Cook's lawyers accuse the White House of "cherrypicking" facts and say any fraud claims rest on unrelated clerical errors, according to The Guardian. They said Cook "welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her".

The reports do not include a statement from Cook herself, or responses from the Justice Department or the Federal Reserve.

Analysis

The committee appears designed to give the removal effort a formal process, an issue raised in court rulings on the first attempt, according to the reports reviewed by Vocemundi. Several outcomes are possible. The committee could find cause, which would likely prompt a new removal attempt and further legal challenge. It could find no cause, or Cook's lawyers could contest the hearing's legitimacy. The reports do not say how any finding would interact with the ongoing litigation. The case also sits within a wider debate over the Fed's independence, as the White House has pressed for lower rates while the Fed has raised them.

Produced by the Vocemundi newsroom with AI assistance.