President Donald Trump has appointed a three-member panel to investigate whether Federal Reserve Governor Lisa Cook made false statements in mortgage-related documents and whether the allegations could justify removing her from the Fed. The panel will hold a hearing at the White House on November 5. The process could shape how the administration addresses due-process requirements for removing a Fed governor, while renewing market concerns about the central bank’s independence.
Trump appointees named to the panel
Trump announced the panel on Friday in a presidential memorandum dated October 7. Its members are Kevin Hassett, chairman of the National Economic Council and the president’s chief economic policy adviser; Andrea Lucas, chair of the Equal Employment Opportunity Commission; and Keith Sonderling, acting director of the Office of Government Ethics. The memorandum allows the panel to seek input from relevant officials in the executive branch and federal agencies.
Trump wrote that the president has a duty to ensure the law is faithfully executed, including dismissing subordinates he believes cannot speak truthfully or comply with the law. The panel will examine whether Cook made false statements in connection with one or more mortgage documents and report to the president on whether there are grounds for her removal.
White House hearing set for November 5
The hearing is scheduled to take place at the White House on November 5 and will last no more than four hours. It will be closed to the public, but a transcript will be prepared. Under the memorandum, Cook must attend and answer questions from the panel, Justice Department officials and her lawyers. The panel must also provide her with the evidence it is considering.
Cook may submit statements, written evidence and written witness declarations, and may challenge relevant evidence. She can also file a written position statement, which must be delivered three days before the hearing. The memorandum does not say whether the White House will release investigative materials or the full evidentiary record.
Cook’s lawyers, Abbe Lowell and Norm Eisen, questioned whether the process could be objective. They said Trump had repeatedly stated that he had decided to fire Cook, raising concerns that the hearing could be a formality. They added that Cook is willing to present the facts, denies committing mortgage fraud and believes there is no legal basis to remove her from the Fed’s Board of Governors. The lawyers said they had contacted the White House to assess whether the proposed process could amount to a genuine review.
Supreme Court raised due-process concerns
The panel’s investigation follows a Supreme Court ruling in June. The court found that Trump’s earlier attempt to remove Cook had violated her due-process rights. In August 2025, Trump announced on social media that he was firing her “for cause,” without giving her an opportunity to contest the allegations.
The Supreme Court did not specify the steps the White House must take to remove Cook. The investigation and hearing appear intended to address the court’s concerns about procedural safeguards, but whether they will satisfy those requirements remains unresolved.
Fed personnel dispute adds to rate-policy uncertainty
The investigation may renew concern about Trump’s efforts to change the Fed’s current board. He has advocated sharply lower interest rates for years and criticized then-Fed Chair Jerome Powell for not cutting rates faster. The Justice Department has also investigated oversight of renovations to the Fed’s headquarters. Powell disclosed related subpoenas in January and said the investigation was an excuse to try to remove him.
Powell’s term as chair ended in May, but he chose to remain on the Fed’s board. If the effort to remove Cook proceeds, it could also affect whether Powell stays on the board.
The policy backdrop remains unsettled. The Federal Open Market Committee raised rates by 25 basis points last month, its first increase since 2023. The Fed had cut rates three times in 2025 and considered further cuts earlier this year. On Thursday, Fed Governor Christopher Waller, a Trump appointee, said inflationary pressure from the war in Iran and related disruption to energy markets could require further rate increases.
The Cook case therefore concerns both the allegations against an individual governor and the process for changing the Fed’s leadership amid contentious rate decisions. The panel has yet to issue its assessment, and it remains unclear whether the White House will take further action based on its findings.