Trump Forms Committee to Evaluate Federal Reserve's Lisa Cook

President Donald Trump has announced the creation of a committee to assess whether Federal Reserve Board Governor Lisa Cook should be dismissed. Trump has accused Cook of mortgage fraud and had previously attempted to remove her in 2025, but the effort was blocked by the Supreme Court on procedural grounds. The committee, comprised of Trump appointees Kevin Hassett, Keith Sonderling, and Andrea R. Lucas, will review evidence and Cook's response. Cook is expected to attend a hearing at the White House on November 5, with a follow-up allowed until November 10, but no final deadline for the decision has been set. This method of using a committee for such decisions has historical precedent, but is not mandated by the Supreme Court's ruling regarding procedural requirements for such removals.

Cook's attorneys have denied the fraud allegations and stated that there is no cause for her removal. They have welcomed the committee's hearing as a chance for Cook to present her side and address the allegations. An eventual recommendation will be made by the committee to President Trump, who holds the final decision-making power.

This development could impact the Federal Reserve's operations if Cook is removed, as it concerns governance at a high level. The involvement of a committee adds an unusual procedural layer to the process of removing a Fed governor.