Trump sets up White House committee to investigate Fed Governor Lisa Cook

2 min read
Trump sets up White House committee to investigate Fed Governor Lisa Cook
PrimeXBT Editorial Team
Reviewed by PrimeXBT

President Donald Trump has formally set up a committee of inquiry to examine allegations that Fed Governor Lisa Cook made false statements about mortgages. The three-member panel is due to hold a hearing with Cook on Nov. 5. Her lawyers doubt the process is legitimate, and Democrats criticized the move.

President Donald Trump formally established a committee of inquiry to investigate allegations that Federal Reserve Governor Lisa Cook made false statements related to mortgage instruments, the White House announced Friday. The move is the latest step in his effort to remove Cook, a nominee of former President Joe Biden, from the board of the Federal Reserve.

Three administration officials make up the panel

The committee comprises three executive branch officials: Kevin Hassett, Trump's top economic aide, Keith Sonderling, acting head of the Office of Government Ethics, and Equal Employment Opportunity Commission Chair Andrea Lucas. CNBC notes that no outside, independent arbiters are mentioned.

The panel and Cook are scheduled for an in-person hearing at the White House on Nov. 5, two days after the midterm election, the memo states. Members can consult with the Department of Justice and other agencies.

Court ruling left the door open

Trump first tried to fire Cook last year after administration officials raised allegations about at least one mortgage-related document. Cook denied wrongdoing and sued, and the Supreme Court in June narrowly upheld a ruling that temporarily barred her dismissal.

However, the court did not stop Trump from trying again. It rejected his first bid because Cook was not given proper legal due process, and under the Federal Reserve Act a president can remove a governor only for cause.

Cook's lawyers and Democrats push back

Cook's attorneys, Abbe Lowell and Norm Eisen, expressed deep skepticism about the inquiry's legitimacy. They said, however, that she welcomes the chance to present the facts to clear her name.

Sen. Elizabeth Warren, D-Mass., accused Trump of convening an illegitimate show trial. Senate Minority Leader Chuck Schumer, D-N.Y., said the move is about Trump trying to seize control of the Fed.

Source: CNBC

Trading involves risk.

Most traded markets

XAU / USD
+1.56% 4,198.06
BRENT
+0.5% 107.445
BTC / USD
+2.54% 82,622.8
EUR / USD
-0.1% 1.11996
USTEC
+0.37% 30,875.20
NFLX
-1.4% 70.49
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse World News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.