Trump Launches Committee to Probe Fed Governor Cook — SkimNews
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Trump announced a three-member committee to investigate Federal Reserve Governor Lisa Cook over alleged false statements on 2021 mortgage documents, to determine whether grounds exist for her removal under federal law.
- The committee — comprising the assistant to the president for economic policy, the EEOC chair, and the Office of Government Ethics director — will hold a hearing on November 5 where Cook must appear and answer questions.
- FHFA Director Bill Pulte triggered the original removal effort in August 2025 by accusing Cook of misrepresenting two properties on a mortgage application; she was appointed by Biden in 2022 with a term running until 2038.
- The Supreme Court ruled earlier this year that the president cannot remove a Fed governor without adequate cause and due process, after a federal judge blocked Cook's firing in September 2025; the case remains in lower court.
- The probe fits a broader pattern: Trump investigated then-Chair Jerome Powell before his term ended in May, then installed Kevin Warsh as his replacement after saying in December 2025 he would only appoint rate-cut supporters.
- The Federal Reserve raised its benchmark rate 25 basis points to 3.75–4% last month — the first hike in three years — amid Iran tensions, oil market pressure, and rising inflation; CME FedWatch forecasts rates will hold at the next decision before midterms.
Why it matters: The probe lands as the Fed just hiked rates 25 bps to 3.75–4% — the first increase in three years — despite Trump's push to install rate-cut loyalists. A November 5 hearing, days before midterms, could determine whether Trump can effectively remove a sitting Fed governor over mortgage allegations, with direct stakes for central bank independence and the trajectory of interest rate policy.
Ask SkimNews
