Trump Moves to Fire Fed's Lisa Cook After Supreme Court Blocks First Attempt
President Trump has launched a committee to investigate Federal Reserve Governor Lisa Cook over mortgage fraud allegations, renewing his effort to remove her from the central bank's board after the Supreme Court blocked his first attempt.
President Donald Trump has created a committee to investigate Federal Reserve Governor Lisa Cook, marking his latest attempt to remove her from the central bank's Board of Governors [258611][258618]. The committee will examine claims that Cook made false statements on mortgage documents [258618]. Cook, who was nominated by former President Joe Biden, denies the allegations [258593].
The move follows a Supreme Court ruling that blocked Trump's initial attempt to fire Cook [258640]. The question of whether a president can remove a Fed governor remains central to the dispute, and the Supreme Court's decision may have opened the door for further action [258631].
Trump said a hearing will be held next month to examine the claims, which remain unsubstantiated [258302].
The potential removal of Cook raises significant questions about the Federal Reserve's independence. The Fed is the United States' central bank, responsible for setting interest rates that affect borrowing costs for mortgages, credit cards, and savings accounts [258631]. If Trump succeeds in reshaping the Fed's leadership, it could influence how the central bank sets interest rates [258631].
The fight is not just about one seat on the board. It is about whether the White House can exert control over the Federal Reserve, which is designed to operate independently [258631]. The outcome could also affect Jerome Powell, the Fed's chair [258631].