Trump sets up 3-member committee to investigate Fed Governor Lisa Cook over mortgage allegations

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President Donald Trump announced Friday (Oct 9) that he is creating a three-member "committee of inquiry" to investigate whether Federal Reserve Governor Lisa Cook made false statements in "one or more mortgage instruments," and to report to him whether there is "cause" for her removal. The memorandum, dated Oct 7, is posted on the White House website.

All three members are Trump-appointed officials: White House National Economic Council Chair Kevin Hassett, Equal Employment Opportunity Commission Chair Andrea Lucas, and Office of Government Ethics acting director Keith Sonderling. The committee may consult personnel from the Justice Department and other federal agencies.

The memo orders a closed in-person hearing at the White House on Nov 5 — no longer than four hours, closed to the public but transcribed — which Cook "shall" attend to answer questions. She may submit a written position statement at least three days before the hearing and a further written statement within ten days after; the committee then delivers written findings of fact and conclusions of law, with a recommendation, to Trump.

Background: Trump tried to fire Cook a year ago over the same allegations; after she sued, the Supreme Court ruled in June that she could keep her job while the legal issues were sorted out, without ruling on the merits, kicking the case back to a federal district court. Cook has denied wrongdoing and has not been charged with a crime. Her lawyers say any fair hearing will conclude there is no cause to remove her.

Cook is one of the 12 voters on the Fed's rate-setting committee. Trump has been pressuring the Fed to cut interest rates; the Fed raised rates last month instead. The hearing falls on Nov 5 — two days after the congressional elections; a successful removal would open a vacancy on the seven-member Board.