US President Trump has initiated a formal White House inquiry into Federal Reserve Governor Lisa Cook, marking a fresh escalation in the ongoing standoff between the executive branch and the central bank.
Trump will summon Federal Reserve Governor Lisa Cook to the White House for a hearing on his administration’s allegations she made false statements in connection with her mortgages, escalating his bid to fire her just weeks ahead of elections that will determine if Trump’s Republican Party maintains control of Congress.
Trump has been trying to fire Cook for more than a year as he moves in unprecedented ways to exert more control over a central bank he views as refusing for political reasons to lower interest rates as he wants.
Lawyers for Cook said on Friday any fair hearing would show there is no legal basis for firing her.
The newly established committee of inquiry is tasked with investigating allegations that Cook made false statements on mortgage documents prior to her tenure on the board.
This administrative maneuver follows a protracted legal battle, highlighted by a Supreme Court ruling earlier in the year which determined that the president cannot dismiss a Fed governor without satisfying strict procedural safeguards and establishing adequate cause.
Cook, who was appointed in 2022, has consistently denied any wrongdoing, dismissing the claims as an unsubstantiated attempt to pressure the independent monetary institution.
Legal scholars and financial analysts are closely monitoring the probe, noting its potential ramifications for the central bank’s autonomy as economic pressures and interest rate decisions continue to fuel tensions ahead of the upcoming midterm elections.
