President Donald Trump has ordered Federal Reserve Governor Lisa Cook to appear before a White House committee investigating allegations of mortgage fraud, taking his fight with the central bank into new territory.
According to the Associated Press, an executive memorandum issued on Oct. 9 established a “committee of inquiry” to investigate claims that Cook listed two different properties as her primary residence on mortgage applications in 2021. The allegations suggest she may have done so to secure lower interest rates.
Critics question the inquiry’s precedent
Trump has ordered Cook to attend a closed-door hearing at the White House on Nov. 5, 2026, where she will face questions about the applications. A full transcript is expected to be published after the hearing, although the public will not be able to follow the proceedings as they happen.
The move adds to months of legal wrangling over Trump’s attempts to remove Cook from the Federal Reserve’s seven-member Board of Governors. In June 2026, the Supreme Court blocked her summary removal but left open the possibility of the president pursuing it with proper notice and a hearing.
Trump has since appointed Kevin Hassett, Keith Sonderling, and Andrea Lucas to the inquiry panel. Former Federal Reserve Chief Counsel Scott Alvarez has argued that the move goes beyond earlier precedents, including a commission established under President William Howard Taft in 1912.
There is still the question of whether the allegations against Cook are enough to justify her removal. Federal law generally requires a president to show cause before dismissing a Fed governor, and legal experts have questioned whether a dispute over mortgage applications would meet that standard.
The timing of the inquiry is also difficult to ignore. Trump has repeatedly demanded interest rate cuts to stimulate the economy, while the Federal Reserve raised rates on Sept. 16, 2026, in a decision Cook supported despite pressure from the White House to do the opposite.
Wall Street analysts have viewed the proceedings as a possible way for Trump to replace Cook with someone more aligned with his economic priorities. The administration’s motives remain contested, however, and the mortgage allegations have yet to be resolved.
Civil rights advocates have raised concerns
Cook’s position on the board has brought another dimension to the dispute. She is the first Black woman to serve as a Federal Reserve governor, and civil rights advocates have raised concerns about the administration’s treatment of other prominent Black officials.
Her legal team is now weighing whether she will participate in the hearing as it considers how best to respond to the allegations. For Cook, the immediate issue is clearing her name. For the administration, the inquiry could become a route toward removing a governor who has resisted its pressure on interest rates.
Published: Oct 10, 2026 05:00 pm