President Donald Trump on Friday announced a Trump committee investigation to examine mortgage fraud allegations involving Federal Reserve Governor Lisa Cook, according to a notice posted on the White House website. The move comes just over two months after the White House told Cook it was weighing her removal, and less than four months after the Supreme Court blocked Trump’s initial attempt to fire her while litigation proceeds.
“As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” Trump wrote in the notice.
Cook has forcefully denied the mortgage fraud allegations, and other financial records cited in news reports appear to undercut the administration’s claims.
Trump committee investigation details
The dispute dates back more than a year, when Trump posted online a letter informing Cook that he was firing her. He alleged Cook, who began serving on the Fed Board in 2022 and was nominated in 2023 by then-President Joe Biden to a full 14-year term, committed mortgage fraud in 2021 by listing two properties, a Georgia condo and a Michigan house, as her primary residence on separate mortgage applications to secure better loan terms.
Lower courts allowed Cook to remain in her position during the legal challenge. U.S. District Judge Jia Cobb concluded Cook was substantially likely to show the firing violated federal law, finding that the statute permitting the president to remove a Federal Reserve governor for cause does not extend to conduct before she joined the board.
Cobb also ruled Cook’s constitutional right to due process was violated because she did not receive notice or a chance to contest the dismissal beforehand.
A divided panel of the U.S. Court of Appeals for the D.C. Circuit left Cobb’s order in place, with the majority agreeing Cook was likely to prevail on her due process claim.
The administration asked the Supreme Court to pause the order. The justices declined and set arguments for January 2026.
In a 5-4 decision on June 29, the court again allowed Cook to stay in office. Chief Justice John Roberts wrote that the president failed to provide the procedural protections required by statute, preventing Cook from properly disputing the allegations.
Closed hearing set at the White House
Following the court’s decision, White House Deputy Chief of Staff Dan Scavino notified Cook in an Aug. 5 letter that Trump was considering removing her and gave her 21 days to respond. In an Aug. 27 reply, Cook’s attorney, Abbe Lowell, said the allegations were unfounded and untrue and argued that removal on that basis would erode the independence Congress intended for the Federal Reserve.
The Friday notice named three senior officials to the new committee: Kevin Hassett, Assistant to the President for Economic Policy; Andrea Lucas, chair of the Equal Employment Opportunity Commission; and Keith Sonderling, acting director of the Office of Government Ethics and Secretary of Labor.
The committee was directed to hold a nonpublic hearing at the White House on Nov. 5. Members may question Cook, and she can present arguments and evidence.
If she submits a post-hearing statement, it is due by Nov. 10. The committee is to deliver written findings of fact, legal conclusions, and a recommendation on whether to remove Cook as soon as practicable after the hearing.
Arguments in the case are currently scheduled before the U.S. Supreme Court in January 2026, underscoring the high-stakes clash over presidential power and the independence of the central bank.
The ongoing legal battle over Cook’s position echoes other recent disputes over courts’ roles in checking executive branch decisions, such as those described in Justices weigh courts’ role in Johnson v. United States Congress.
The Federal Reserve Board, where Cook currently serves, continues to outline its mission, structure, and policymaking authority on its official site at the Board of Governors of the Federal Reserve System.
