President Donald Trump has escalated his campaign against the Federal Reserve by establishing a committee of inquiry to investigate mortgage fraud allegations against Governor Lisa Cook. The order directs Cook to appear at a closed hearing on November 5, 2026, just two days after the midterm elections. This move follows a June 2026 Supreme Court ruling that blocked Trump's initial attempt to fire Cook without due process. Cook's legal team maintains the allegations are a political attempt to compromise the central bank's independence and force interest rate cuts.
Mortgage allegations against Lisa Cook
- ▪Mortgage fraud allegations against Federal Reserve Governor Lisa Cook stem from an August 2025 criminal referral by Federal Housing Finance Agency chief Bill Pulte, who claimed she declared primary residence status on multiple properties
- ▪Federal Reserve Governor Lisa Cook denied intentional wrongdoing, stating she mistakenly listed two properties as her primary residence, while her lawyer Abbe Lowell asserted the real estate paperwork error does not constitute fraud
Attempts to dismiss Cook
- ▪In June 2026, the Supreme Court ruled 5-4 that Federal Reserve Governor Lisa Cook could remain in her job because President Donald Trump failed to provide her an opportunity to defend herself, without permanently blocking her removal
- ▪In August 2026, a White House official sent a letter to Federal Reserve Governor Lisa Cook formally notifying her that President Donald Trump was considering removing her
Trump's pressure on the Federal Reserve
- ▪President Donald Trump and his administration have engaged in a long-running pressure campaign to force the Federal Reserve to cut interest rates, which has included public attacks on multiple board members
- ▪President Donald Trump demanded on September 30, 2026, that Federal Reserve board member Jerome Powell resign over alleged construction cost overruns, despite a Fed Inspector General report clearing Powell of wrongdoing
Federal Reserve independence
- ▪President Donald Trump's move to investigate Federal Reserve Governor Lisa Cook has reignited concerns over the political independence of the U.S. central bank to set interest rates free from political pressure
- ▪The Justice Department dropped its criminal probe into Jerome Powell after Republican lawmakers blocked the appointment of Kevin Warsh as Federal Reserve chair
Debatable claims
- ▪Lisa Cook's mortgage paperwork errors justify her removal from the Federal Reserve
- ▪The White House investigation of Lisa Cook threatens the independence of the Federal Reserve
- ▪The investigation of Lisa Cook is primarily motivated by political pressure to lower interest rates
- ▪A White House-appointed committee is an inappropriate forum to investigate a Federal Reserve governor
Story comments
Loading comments…