Trump Seeks Removal of Federal Reserve Governor Lisa Cook

US President Donald Trump has launched a new bid to remove Federal Reserve Governor Lisa Cook from her position, despite being rebuffed by the supreme court in June. The move comes as part of Trump's ongoing efforts to exert control over key government agencies.

A special committee will be formed to investigate Cook, who is facing allegations of mortgage fraud. The committee will consult with justice department officials to determine whether there is sufficient cause for her removal from office. This marks a significant escalation in the White House's campaign against Cook.

The investigation process will involve an in-person hearing on November 5th, which will be closed to the public but transcribed and published afterwards. Cook has been given the opportunity to submit a written statement in her own defense, and will also face examination from her legal counsel as well as those representing the White House.

Trump's decision to pursue this new line of inquiry has sparked accusations that he is cherry-picking facts in order to justify Cook's removal. Her legal team maintains that any claims of fraud are based on unrelated clerical errors, rather than any intentional wrongdoing by Cook herself.

The White House has announced plans to hold a hearing to investigate Federal Reserve Governor Lisa Cook's alleged involvement in mortgage fraud. However, Cook's legal team is skeptical about the legitimacy of this process, suggesting that it may not conform to the law.

In a statement, Cook's lawyers expressed their doubts about the objectivity of the hearing and its potential outcome, stating that if it is conducted fairly, there should be no evidence to support removing her from the Federal Reserve Board. They also noted that Cook is eager to present the facts in order to clear her name and demonstrate that she has committed no wrongdoing.

Cook's tenure at the central bank was marked by a significant milestone when she became the first Black governor of the Fed, appointed by President Joe Biden in 2022 for a 14-year term. Prior to joining the Federal Reserve, Cook had a distinguished academic career, teaching at Harvard University and Stanford University, as well as serving on Barack Obama's council of economic advisers.

The controversy surrounding Cook's alleged mortgage fraud began in August 2025 when she was unexpectedly fired by Trump following allegations that she listed two properties in Georgia and Michigan as her primary residence and failed to report rental income from an Atlanta property.

A federal court has ruled that Trump's termination of Fed governor Lisa Cook was unconstitutional due to a lack of proper procedure and an opportunity for her to dispute the allegations.

This decision came as Trump launched intense criticism against Powell, then the chair of the Federal Reserve, in his efforts to secure lower interest rates. Trump also initiated a Department of Justice investigation into Powell, which was eventually dropped in April.

The Federal Reserve is designed to operate independently and without bias, with Congress establishing it as such. Economists widely agree that an apolitical central bank is crucial for maintaining economic stability within a country.

This controversy highlights concerns about the potential erosion of the Fed's independence, particularly under Trump's administration.