President Trump announced Friday he’s forming a committee to determine whether Federal Reserve Governor Lisa Cook should be fired—an unprecedented move that raises constitutional questions about the independence of America’s central bank.
Trump accused Cook of mortgage fraud and ordered her fired in 2025. The Supreme Court blocked that attempt on procedural grounds but left the door open for another try. Now Trump is creating what he calls a “committee of inquiry” to build a case for her removal.
How the Committee Process Will Work
According to Trump’s memo, Cook must appear at a White House hearing on November 5. She can bring an attorney. The three-member committee will review evidence against her and hear her defense. Cook has until November 10 to submit follow-up materials after the hearing.
The committee will then recommend to Trump whether he has cause to fire her. The final decision rests with the president, with no set deadline.
Trump appointed Kevin Hassett, director of the National Economic Council, to lead the committee. The memo did not name the other two members.
Cook’s Response to Fraud Allegations
Cook’s attorneys responded to Trump’s August notice by denying all allegations of fraud. They argued the president has no legal cause to remove her from the Federal Reserve Board.
The Fed was designed to operate independently from political pressure, with governors serving 14-year terms specifically to insulate monetary policy from short-term political winds. No president has successfully fired a Fed governor in modern history.
What Happens to Your Savings
Markets are watching closely. The Federal Reserve controls interest rates that affect everything from mortgage costs to credit card bills to retirement account returns. Any perception that the Fed answers to political pressure rather than economic data could spook investors and destabilize the dollar.
The committee hearing is scheduled for November 5—one day before the midterm elections. Trump’s final decision on Cook’s fate could come anytime after the committee delivers its recommendation, likely in mid-November.
Key Points
- Trump ordered a three-member committee to decide if he can fire Fed Governor Lisa Cook for alleged mortgage fraud
- Cook will defend herself at a November 5 White House hearing, with the committee making a recommendation by mid-November
- No president has successfully removed a Fed governor in modern times, raising questions about central bank independence
https://www.cnbc.com/2026/10/09/trump-lisa-cook-fed-firing-committee-explained.html – October 09, 2026
