Trump Memo Sets Lisa Cook Hearing for Nov. 5 in Bid to Remove Her
Key Facts
President Donald Trump opened a new chapter in his effort to remove Federal Reserve Governor Lisa Cook by forming an investigative panel to examine allegations that she made false statements on mortgage applications, according to the Associated Press. A presidential memorandum set a closed-door hearing at the White House for Nov. 5, with a transcript to be published. Cook’s two lawyers said they were considering whether she would attend and respond to the allegations. The AP quoted her lawyer as saying she "welcomes the opportunity to present the facts to clear her name and establish that there is no legal basis for her removal." The effort comes as White House intervention raises concerns about the central bank’s independence, amid Trump’s repeated calls for lower interest rates.
The White House memorandum says the hearing must be held in person and closed to the public, recorded in a transcript and last no more than 4 hours. It also requires the panel to provide Cook in advance with the evidence it will consider and allows her to submit a written statement after the hearing. The deadline for that statement is Nov. 10, after which the panel will send its findings and recommendation to Trump as soon as practicable. But Cook’s participation on the scheduled date is in doubt: Her lawyer told Reuters she would be unable to attend on Nov. 5 because of commitments at financial and monetary meetings in Europe. He said the earliest she could participate would be after the Fed’s policy meeting scheduled for Dec. 8 and 9.
The investigative panel includes Kevin Hassett, Keith Sonderling and Andrea Lucas, according to the Associated Press. In a letter, Cook’s lawyer said Hassett, a proposed panel member, had previously pressured her to leave her office and suggested there was cause to remove her, which he said indicated possible bias. Reuters reported that the panel will send its recommendation to Trump on whether there is cause for removal after Cook’s deadline to submit her subsequent statement. If Cook is removed, a seat on the Fed’s 7-member Board of Governors would become vacant. The hearing date coincides with a significant political moment, coming two days after the midterm elections, which will determine whether Republicans retain control of the House and Senate, while senators consider the president’s Fed nominees.
The allegations concern two different properties each being described as a primary residence in mortgage applications filed in 2021. The Associated Press reported that Cook denied any wrongdoing and has not been criminally charged. Trump’s first attempt to remove her dates to August 2025, according to Reuters, which said no president had previously tried to remove a sitting Federal Reserve governor. The AP also described the effort as the first of its kind in the central bank’s 113-year history and noted that Cook is the first Black woman on its Board of Governors. The Supreme Court kept Cook in her position in June, while allowing another attempt if she was properly notified and given an opportunity to respond to the evidence.
On the economic front, new orders for durable goods in the United States rose 1.8% in September to $345.4 billion, following a 0.1% increase in August, according to data from the U.S. Census Bureau. Orders excluding transportation rose 0.5%, while transportation equipment led the increase, with orders up 4.6% to $119.8 billion. In another indicator, consumer confidence rose 7.5 points to 91.7 in October, from 84.2 in September, according to the Associated Press. An economist at the Conference Board attributed the improvement mainly to better perceptions of current and expected business conditions. However, survey responses collected between Oct. 1 and 21 remained broadly pessimistic, with respondents repeatedly citing higher costs for energy, goods and services.
The Federal Open Market Committee was holding its meeting on Oct. 27 and 28, according to the Federal Reserve calendar, with a news conference scheduled for Oct. 28. Ahead of the meeting, investors expected rates to remain unchanged, according to the Associated Press, and were watching the Fed’s statement for signals about its next steps and inflation outlook. Fed watchers expected there could be two or three dissenting votes among the 12 officials who vote on interest rates, after September’s decision was unanimous. The following day, Thursday, Oct. 29, September personal consumption expenditures data were scheduled for release, according to the agency. That release comes after the Fed meeting, as the investigative panel’s process moves toward Cook’s written statement before it drafts its recommendation to Trump.