What the memo sets up
President Donald Trump has created a “committee of inquiry” to investigate allegations that Federal Reserve Governor Lisa Cook made false statements in connection with mortgage documents. The memorandum is dated October 7 and was reported on Friday, October 9. [1][2]
The memo names three members by title: 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. The Associated Press identified them as Kevin Hassett, Andrea Lucas and Keith Sonderling. [1][2]
The committee is to report whether there is “cause” to remove Cook under 12 U.S.C. 242, the law that lets a president remove a Fed governor only for cause, as the Supreme Court interpreted it in Trump v. Cook earlier this year. It may consult the Justice Department. [1]
The memo schedules a closed, transcribed hearing at the White House on November 5, lasting no more than four hours. It says Cook “shall appear” and may be questioned by the committee, its representatives, including Justice Department personnel, and her own lawyers. The committee must share the evidence it is considering before the hearing. [1]
Cook may file a written statement at least three days before the hearing and a follow-up statement by November 10. The committee will then send the president written findings and a recommendation on whether there is cause to remove her. [1]
How the dispute got here
Trump first tried to fire Cook in August 2025, alleging that she declared two different properties as her primary residence on 2021 mortgage applications. A primary-residence designation can bring a lower interest rate or other better terms. [2]
Cook has denied wrongdoing and has not been charged with a crime. Her lawyers have said the issue was an inadvertent error and that she described one of the properties as a vacation home in other documents. [2]
In June, the Supreme Court ruled that Cook could keep her job. According to the AP, the ruling said a for-cause removal requires a serious, job-related offense, and a footnote said nothing prevented the president from trying again if Cook received proper notice and a chance to respond. [2]
Cook’s lawyers, Abbe Lowell and Norman Eisen, said they were evaluating whether the process “has a possibility of being a genuine one and not simply a box checking exercise,” and that Cook welcomes a chance to clear her name. In a separate statement reported by The Hill, they said they had “grave doubts” the hearing was legitimate, citing the president’s statements that he had already decided to fire her. The Federal Reserve declined to comment. [2][3]
Why the Fed is watching
Before Trump, no president had sought to remove a Fed governor in the central bank’s 113-year history, according to the AP. Governors serve fixed terms and help set interest rates, and the for-cause limit is meant to shield those decisions from political pressure. Cook is one of the 12 voting members of the Fed’s rate-setting committee. [2]
The memo comes weeks after the Fed raised its benchmark rate on September 16 in a unanimous vote under Chair Kevin Warsh. The president has repeatedly called for lower rates. [2]
Scott Alvarez, a former Fed general counsel, told the AP the process gives Cook more procedure than the Supreme Court required, but that the allegations do not appear to meet the court’s for-cause standard. Other analysts quoted by the AP said they expect the process to be used to justify removal. [2]
What remains uncertain
The underlying mortgage statements remain allegations; no court or agency has found that Cook committed fraud, and she has not been charged. Whether she will attend the November 5 hearing was undecided at the latest report. The committee can change its procedures with notice, and any removal that follows could be challenged again in court. Analyst views on the likely outcome are opinions, not findings.
Sources
- The White House — Establishment of a Committee of Inquiry to Investigate Allegations of False Statements by Lisa DeNell Cook, October 7, 2026 ↗Official source
- PBS News / Associated Press — Trump establishes committee to investigate Federal Reserve’s Lisa Cook, October 9, 2026 ↗Source
- The Hill — Trump establishes ‘committee of inquiry’ for Federal Reserve member Lisa Cook, October 9, 2026 ↗Source