Trump forms committee to investigate mortgage fraud allegations against Fed governor Lisa Cook

President Trump has established a committee to investigate allegations against Federal Reserve governor Lisa Cook, including mortgage fraud and whether her statements constituted legal "cause" for Cook's removal from the central bank.

The president has tasked the committee with investigating whether Cook made false statements about two mortgages she took out. The group will report to him whether there is legal cause for Cook's removal.

Trump fired Cook, the first Black woman to serve as a Fed governor, in August 2025, claiming she committed mortgage fraud by making misrepresentations on loan documents years before her appointment to the central bank. Cook, a Biden appointee, has denied any wrongdoing and sued. The lawsuit has gone through multiple court rungs before reaching the Supreme Court earlier this year.

The Supreme Court ruled in June that Cook can continue serving on the Fed's Board of Governors, but did not rule on the merits of mortgage fraud allegations.

Section 10 of the Federal Reserve Act states that each member of the board shall hold office for 14 years unless sooner removed for cause by the president. The statute does not detail what constitutes "for cause." That term has been interpreted in legal rulings to mean inefficiency, neglect of duty, or malfeasance.

In a memo released Friday , the president instructed the committee to conduct an in-person hearing on Nov. 5 to consider the evidence and allegations against Cook. The hearing is set to take place at the White House.

"We have grave doubts that this 'hearing' is a legitimate one that would conform to the law," Abbe Lowell and Norm Eisen, lawyers representing Cook, said in a statement. "But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board."

Cook's lawyers said they have engaged with the White House to evaluate whether the proposed process is genuine and not simply a "box-checking exercise."

The memo states that Cook may submit a written position statement to the committee regarding the allegations at least three days before the hearing and a post-hearing written statement by Nov. 10.

"As soon as practicable after receipt of that statement, the Committee shall submit written findings of fact and conclusions of law to me and shall recommend whether there is cause to remove Governor Cook from her position on the Board of Governors of the Federal Reserve," Trump's memo states.

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 will serve as members of the committee.