Donald Trump sets up committee to probe Fed governor Lisa Cook

US President Donald Trump announced on Friday that he has established a committee to investigate Federal Reserve governor Lisa Cook over allegations of mortgage fraud. The Guardian, CNBC, and the Washington Examiner all reported that the panel will look into whether Cook made false statements regarding mortgage instruments. The decision marks a renewed attempt by the White House to remove Cook from the central bank board. [1][3][4]

The panel will consult with Justice Department officials to determine whether cause exists for her removal, according to the Guardian. The Washington Examiner reported that a White House memo confirmed an in-person hearing will take place in November, while the Guardian reported that a White House hearing would be held. [1][4]

The new inquiry follows earlier attempts by Trump to remove the central bank governor. MSNBC reported that Trump previously claimed to have fired Cook 14 months ago in an effort to gain greater control over the Federal Reserve. As recently as June, the Supreme Court ruled against the White House and blocked her firing as unconstitutional, the Guardian, MSNBC, CNBC, and the Washington Examiner reported. [1][2][3][4]

Cook was sworn in as a member of the Federal Reserve Board of Governors in 2022 and is the first black woman to serve on the board. CNBC reported that she was nominated to the post by former President Joe Biden. [3][12]

Trump has frequently urged the central bank to reduce interest rates. CNBC reported that Trump recently blamed the failure to lower interest rates on a hostile environment, despite his selection of Kevin Warsh as Federal Reserve chair. [3]