US President Donald Trump has ordered an inquiry into Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, as he continues efforts to remove her from the central bank’s board.
Trump has sought to dismiss Cook for more than a year amid an unprecedented push to exert greater control over the Federal Reserve. He has repeatedly criticised the central bank for not cutting interest rates as aggressively as he wants, accusing it of acting for political reasons.
Cook’s lawyers said on Friday that a fair hearing would establish that there was no legal basis for her removal.
“As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” Trump said in a notice published on the White House website.
According to the notice, dated October 7, a committee would investigate the allegations against Cook and advise the president on whether sufficient grounds existed for her dismissal.
A presidential memorandum stated that the committee would hold an in-person hearing at the White House behind closed doors to examine the evidence and allegations against Cook.
Committee members, their representatives or Department of Justice personnel would question the governor for no more than four hours.
Cook’s lawyers, Abbe Lowell and Norm Eisen, said an objective examination would establish that she had not committed mortgage fraud and that no grounds existed for removing her from the Federal Reserve Board.
“Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her,” they said in a statement.
The lawyers added that they had been in contact with the White House regarding the proposed proceedings.
Trump first attempted to dismiss Cook in August 2025, making her the first Black woman to serve on the Federal Reserve Board to face such an action. No US president had previously attempted to remove a sitting Federal Reserve governor.
The dispute has raised concerns about the independence of the central bank, which is widely considered essential to making monetary policy decisions, particularly those aimed at controlling inflation, without political interference.
Earlier this year, the US Supreme Court ruled that the president could not remove a Federal Reserve governor without adequate cause and must follow a clear process by setting out the reasons and providing supporting evidence.
The ruling allowed Cook to remain in her position while returning the case against her to a federal district court.
Cook joined the Federal Reserve Board in 2022 after being appointed by former president Joe Biden, a Democrat. She was reappointed in 2023 to a term extending until 2038.
