Trump orders investigation of Fed governor

President Donald Trump signed an order on Friday directing the attorney general and other federal officials to establish a committee to investigate Federal Reserve governor Lisa Cook.

The allegations against Cook

The presidential memorandum says the committee will investigate allegations that Cook made false statements in connection with one or more mortgage instruments and report whether there is cause for her removal.

Cook's role at the Federal Reserve

Cook is a governor on the Federal Reserve's board and has a permanent vote on interest rates. No president has ever fired a top Fed official.

Cook will get a hearing

The committee is set to meet November fifth for a hearing. Cook shall appear, be examined by the committee, and present written evidence and witness statements regarding the allegations.

Cook's lawyers question legitimacy

Cook's attorneys Abbe Lowell and Norm Eisen said they have grave doubts the hearing is legitimate, citing Trump's repeated statements that he has already decided to fire Cook regardless of facts.

“In light of the President's repeated statements that he has already decided to fire Governor Cook, regardless of the facts and evidence, we have grave doubts that this 'hearing' is a legitimate one”

Cook denies mortgage fraud

Documents obtained by NBC News revealed Cook declared the property in question was to be used as a vacation home, not her primary residence. Her lawyers say she did not commit mortgage fraud.

Origins of the allegations

The allegations against Cook were first leveled in August twenty twenty-five by Federal Housing Finance Agency chief Bill Pulte. Trump amplified those allegations on social media and cited a criminal referral to the Justice Department.

Others have similar mortgage situations

Other top Trump administration officials, including Treasury Secretary Scott Bessent, reportedly have similar mortgage situations.

Supreme Court ruling in June

A Supreme Court ruling in June allowed Cook to remain in her job for now but did not permanently block Trump from removing her. The justices ruled she had the right to defend herself.

Trump's pressure on the Federal Reserve

Trump and Pulte's attacks on Cook came amid a long-running pressure campaign by the administration to get the U.S. central bank to cut interest rates. Cook's vote on the board affects those decisions.

Senator Warren calls it a show trial

Senator Elizabeth Warren, ranking member of the Senate Banking Committee, said Trump is convening an illegitimate show trial in his dangerous quest to illegally take over the nation's central bank.

“President Trump is convening an illegitimate show trial in his dangerous quest to illegally take over our nation's central bank”

Cook's lawyers prepare to fight

Cook's lawyer Abbe Lowell said weeks ago there is no legal basis for Trump to remove Cook for cause.Lowell said he and Cook are prepared to continue to fight any illegal attempt to remove her.

“An inadvertent error is not fraud, as the President and a third of his cabinet should know because they reportedly did the same thing”