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
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