Washington: US President Donald Trump has ordered a formal inquiry into Federal Reserve Governor Lisa Cook over allegations that she made false statements in mortgage applications, renewing his effort to remove her from the central bank’s governing board.
A presidential memorandum issued on October 7 established a three-member committee to examine the allegations and recommend whether there is legal cause to remove Cook from office. The committee will hold a closed-door hearing at the White House on November 5, according to the memorandum.
Cook is required to attend the hearing, which will last no longer than four hours. The proceedings will not be open to the public, but a transcript will be produced.
The committee will include the president’s economic policy adviser, the director of the Office of Government Ethics and the chair of the Equal Employment Opportunity Commission. It must provide Cook with the evidence it intends to consider before the hearing and submit its findings and recommendation to Trump after the proceedings.
Cook may present written evidence, witness statements and arguments in her defence. She will also be allowed to submit a written statement after the hearing.
Cook’s lawyers, Abbe Lowell and Norm Eisen, said they were assessing whether the proposed process could provide a genuine opportunity for their client to respond to the allegations.
“We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box checking exercise,” they said in a statement.
They added that Cook welcomed the opportunity to present the facts and demonstrate that there was no legal basis for her removal.
The allegations concern mortgage applications submitted in 2021, before Cook joined the Federal Reserve Board. Trump has accused her of identifying 2 different properties as her primary residence in mortgage documents. Loans for primary residences can carry more favourable terms than mortgages for second homes or investment properties.
Cook’s lawyers have previously described the discrepancy as an inadvertent error, denying that it amounted to fraud. Cook has not been charged with a crime.
Trump first sought to remove Cook in August 2025. She challenged the move in court, arguing that the allegations did not establish the legal grounds required for her dismissal and that she had not been given the necessary opportunity to respond.
On June 29, 2026, the US Supreme Court ruled 5-4 to allow Cook to remain in office while the legal proceedings continued. The decision addressed the procedural and legal requirements governing her removal, rather than determining whether the mortgage allegations were true.
The ruling left room for the administration to pursue another removal attempt if it followed the required process. The newly established inquiry is the administration’s latest step in that effort.
The case has broader implications for the independence of the Federal Reserve, which sets US monetary policy and influences borrowing costs across the economy.
Trump has repeatedly pressed the central bank to lower interest rates. The dispute with Cook has unfolded amid his criticism of the Fed’s rate decisions and his attempts to exert greater influence over its leadership.
As a member of the Board of Governors, Cook also has a vote on the Federal Open Market Committee, which determines the federal funds rate.
The inquiry does not itself remove Cook from office. The committee is tasked with assessing the allegations and advising Trump on whether there are grounds for dismissal. Any subsequent removal would remain subject to the applicable legal requirements and potential judicial review.
(With inputs from AP, Reuters, US Supreme Court)