Trump Sets Up Panel to Weigh Firing Fed Governor Lisa Cook: What to Know

President Donald Trump has created a committee to investigate allegations that Federal Reserve governor Lisa Cook made false statements on mortgage documents. The panel will advise him on whether there is "cause" to remove her, according to NBC News, CBS News and The Guardian.

The move renews his effort to fire a sitting Fed governor, something NBC News noted no president has ever done. A hearing is set for Nov. 5.

What did Trump order?

Trump signed a memorandum creating what he called a "committee of inquiry." CBS News reported that the memo is dated Wednesday and was made public Friday. The committee will investigate the allegations and report to the president on whether cause exists to remove Cook from the Fed board.

According to CBS News, the three members are the assistant to the president for economic policy, the chair of the Equal Employment Opportunity Commission and the head of the Office of Government Ethics.

How will the hearing work?

CBS News reported that the panel will hold an in-person hearing at the White House on Nov. 5. NBC News noted that this falls two days after the midterm elections. The session will be closed to the public but transcribed, the White House said. The Guardian reported that the transcript will be published.

Cook may submit a written position statement and appear at the hearing. She can present argument, written evidence and witness statements, according to the memo. The committee can question her itself or authorize representatives, including Justice Department personnel, to do so, CBS News reported.

Why is this happening now?

The Supreme Court ruled in June that Cook could stay in her job while her legal challenge continues. CBS News reported that the justices found Trump had not given her notice and a chance to respond before trying to fire her. Chief Justice John Roberts wrote that this does not require a full judicial trial and that written materials could be enough.

The dispute began in August 2025, when Federal Housing Finance Agency chief Bill Pulte alleged mortgage fraud. The Guardian reported that the claims involve two properties, in Georgia and Michigan, listed as a primary residence, along with unreported rental income on an Atlanta property. NBC News reported that documents it reviewed showed Cook declared the property in question a "vacation home," not a primary residence. Cook has denied wrongdoing, and her lawyers say any error was inadvertent and clerical.

What do Cook's lawyers and critics say?

Cook's attorneys, Abbe Lowell and Norm Eisen, said Trump's repeated statements that he has already decided to fire her raise "grave doubts" about whether the hearing will be legitimate. They said she welcomes the chance to present facts, and that they are assessing whether the process is genuine.

Sen. Elizabeth Warren, D-Mass., the ranking member of the Senate Banking Committee, called the proceeding an illegitimate show trial. Trump, in a statement on the White House website, said it is his job to ensure laws are faithfully executed, including by firing subordinates he said cannot be trusted to tell the truth and follow the law.

Why does it matter?

Cook holds a permanent vote on interest rates, which influence borrowing costs such as mortgages and loans. NBC News reported that the administration has long pressed the Fed to cut rates. The Guardian noted that Congress designed the Fed as an independent, nonpartisan body, and that economists widely regard a central bank free of political influence as essential to economic stability.

The Guardian also reported that the Fed raised rates at its last meeting because of elevated inflation tied to the war in the Middle East, drawing criticism from the White House. Whether Cook stays or goes affects who sits on the board that makes those decisions. NBC News added that as long as Jerome Powell remains a governor after his term as chair ended, the administration cannot name a new board member of its choosing.

What happens next?

The Nov. 5 hearing is the next step. After it, the committee will report to Trump on whether there is cause for removal. The sources do not say when he would decide, and they do not say whether Cook would challenge a new removal in court. Her lawyers said earlier that they are prepared to fight any illegal attempt to remove her. The Federal Reserve declined to comment, NBC News reported.

Around Prague, based on reporting by NBC News, CBS News, The Guardian