Washington — President Trump has created a committee to investigate allegations that Federal Reserve Governor Lisa Cook made false statements on mortgage documents, intensifying his renewed effort to remove her from the central bank’s board.
In a memorandum dated Wednesday, Trump established what he called a “committee of inquiry.” The panel will consist of three officials: 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.
Once its review is complete, the committee will advise Trump on whether there is “cause” to remove Cook from the Federal Reserve Board. The three-member panel is scheduled to hold an in-person hearing at the White House on Nov. 5 to examine the allegations and evidence. The proceeding will be closed to the public but transcribed, according to the White House.
Under the president’s memorandum, Cook may submit a “written position statement” addressing the allegations and may attend the hearing.
“Governor Cook may present argument, written evidence, and written witness statements regarding the evidence and allegations,” the memorandum states. It adds that the committee may question Cook about statements made by her or her lawyers, or authorize representatives, including Justice Department personnel, to conduct the questioning.
Cook’s attorneys, Abbe Lowell and Norm Eisen, 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 said they questioned whether the process would be impartial, citing Trump’s repeated statements that he had already decided to dismiss Cook regardless of the evidence. “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. They added that they were working with the White House to determine whether the proceedings could be genuine rather than merely a “box checking exercise.”
The committee appears to be Trump’s latest effort to establish a process that could withstand legal challenges to Cook’s removal. Trump initially sought to oust her last year after Bill Pulte, then a senior administration official, accused her of making false statements on mortgage documents involving two properties before she joined the Federal Reserve.
Cook contested the attempted removal, arguing that it violated federal law. That law permits a president to remove a Federal Reserve board member only “for cause.”
In June, the Supreme Court ruled that Cook could remain in office while her legal challenge proceeded. In a 5-4 decision, the justices concluded that Trump had not provided the procedural protections required by law—namely, notice of the allegations and an opportunity to respond before dismissing her.
“That is not to say that a Federal Reserve Governor is entitled to an audience with the President or a fullblown judicial trial,” Chief Justice John Roberts wrote for the majority. “Instead, all that is required is notice ‘to the officer of the charges made against him’ and ‘an opportunity to be heard in his defense.’”
Roberts added that the opportunity to respond could be provided entirely through written submissions, without an oral presentation. The law requires only the ability to support a defense “by argument however brief, and, if need be, by proof, however informal,” before a final decision is reached.
After the Supreme Court ruling, Trump made another attempt to remove Cook. In an August letter, the White House notified her that the president was considering her dismissal over the mortgage-fraud allegations and detailed the claims against her. The letter also gave Cook a deadline to respond.
Cook rejected the allegations and said in her response to the White House that she had “never committed mortgage fraud.” Lowell said removing her based on the accusations would “ignore the facts and the law.”
