Trump ramps up battle to fire Fed's Lisa Cook. Her lawyers say there's no basis to remove her.
By Robert Schroeder
'Committee of inquiry' hearing scheduled for Nov. 5
Federal Reserve governor Lisa Cook is the subject of a new inquiry by the White House, in the latest escalation in President Donald Trump's attempt to fire her.
President Donald Trump on Friday escalated his battle to fire Lisa Cook, a member of the Federal Reserve's Board of Governors, as he set up a new inquiry to look into allegations that she made false statements about mortgages.
The White House said a "committee of inquiry" will probe claims that Cook made "false statements in connection with one or more mortgage instruments." A hearing is scheduled for Nov. 5.
Back in June, the Supreme Court ruled that Cook - who was nominated by President Joe Biden - could keep serving in her role at the Fed while her legal challenge continued. The court found that Trump didn't give her enough procedural protections before the president said he was removing her.
From the archives (June 29, 2026): Fed's Lisa Cook can stay on at central bank while challenging Trump's attempt to fire her, Supreme Court rules
Cook's lawyers said she "welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her."
The lawyers, Abbe Lowell and Norm Eisen, added that "in light of Trump's repeated statements that he has already decided to fire Governor Cook," they had doubts that the hearing will be legitimate.
"But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve board," they said in a statement.
Trump wants the committee to report on whether there are grounds for Cook's removal from office. She hasn't been charged with a crime.
The committee that will hear Cook's case is made up of Trump aides and appointees, including his top economic adviser, Kevin Hassett, and the heads of the Office of Government Ethics and the Equal Employment Opportunity Commission.
The Fed is currently led by Chairman Kevin Warsh, a Trump appointee. Cook is one of the 12 voting members of the rate-setting committee, which Trump has criticized for raising interest rates.
Terry Haines of Pangaea Policy said in a note that the likelihood of finding enough evidence to meet the statutory "for cause" standard to remove her is low, but not impossible.
-Robert Schroeder
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10-09-26 1350ET
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