President Donald Trump has escalated his efforts to remove Federal Reserve Governor Lisa Cook by signing an executive order to create a special committee tasked with investigating her conduct. According to a presidential memorandum released on Friday, the probe focuses on allegations that Cook made false statements concerning mortgage instruments. The resulting findings will be used to determine if there is sufficient legal cause to terminate her appointment, marking an unprecedented move toward firing a top official at the nation’s central bank.
The conflict centers on accusations originally raised by Federal Housing Finance Agency chief Bill Pulte, who alleged that Cook committed mortgage fraud. While Trump has amplified these claims across social media, separate reports suggest the issue involves how certain properties were designated as residences versus vacation homes. Attorneys for Cook argue that any errors were inadvertent and point out that several high ranking members of the current administration have faced similar scrutiny over their own mortgage applications. They maintain that the proceedings are less about financial paperwork and more about political intimidation.
Legal tensions have been mounting since June when the Supreme Court ruled that while Cook could keep her job for the moment, she must be given an opportunity to defend herself against removal attempts. This new committee represents the administration’s effort to fulfill that requirement, scheduling a hearing for November 5, just two days after the midterm elections. Cook’s lawyers have expressed skepticism regarding the legitimacy of the process, describing it as a predetermined outcome rather than a genuine search for facts.
Critics of the move say this is part of a broader pattern of aggression directed at the Federal Reserve during a period of intense debate over interest rates. Senator Elizabeth Warren characterized the inquiry as a show trial designed to undermine the independence of the central bank. These attacks mirror recent criticisms aimed at Jerome Powell, suggesting a concerted strategy by the White House to reshape the leadership of the Fed through administrative pressure and public accusations of misconduct.