Trump Appoints Committee to Investigate Federal Reserve Governor

In his ongoing efforts to fire Federal Reserve Board Governor Lisa Cook, President Donald Trump has formally established a “committee of inquiry” to investigate allegations that she made false statements related to “one or more mortgage instruments,” the White House announced Friday.

The announcement is the latest development in Trump’s long-running effort to fire Cook, a nominee of former President Joe Biden, from the central bank’s board.

Trump often urges the Fed to lower interest rates, and he recently said the failure to do so by his handpicked chair, Kevin Warsh, is the fault of a “hostile” board, CNBC noted.

According to CNBC, the committee comprises three executive branch officials, including Kevin Hassett, Trump’s top economic aide and a chief defender of the administration’s economic record.

That’s according to a presidential memorandum posted on the White House website. The Federal Reserve declined to comment.

No Outside Arbiters

The other two members are Keith Sonderling, acting head of the Office of Government Ethics, and Equal Employment Opportunity Commission Chair Andrea Lucas. No outside, independent arbiters are mentioned.

Trump’s announcement is seen as an unusual move, and it immediately drew criticism from Cook, through her lawyers, and a key congressional Democrat, CNBC reported.

Trump’s panel and Cook are scheduled to appear for an in-person hearing at the White House on Nov. 5, two days after the midterm election, the memo states. Its members can consult with the Department of Justice and other agencies “to aid in its inquiry,” the notice says.

Cook’s attorneys, Abbe Lowell and Norm Eisen, expressed deep skepticism about the legitimacy of the inquiry, but nevertheless said Cook “welcomes the opportunity to present the facts so she can clear her name.”

“In light of the President’s repeated statements that he has already decided to fire Governor Cook – regardless of the facts and evidence — we have grave doubts that this ‘hearing’ is a legitimate one that would conform to the law,” the lawyers said to CNBC in a statement. “But if it is anything close to objective, the conclusion will be that Governor Cook did not commit mortgage fraud, leaving no cause to remove her from the Federal Reserve Board.”

Lowell and Eisen added: “We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box-checking exercise. Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her.”

False Statements Alleged

Trump first tried to fire Cook last year, after administration officials raised allegations that she made false statements on at least one mortgage-related document, CNBC reported.

Cook has denied wrongdoing and filed a lawsuit to block her dismissal. A federal court temporarily barred Trump from firing her, and the Supreme Court narrowly upheld that ruling in June.

The Supreme Court did not stop Trump from trying again for Cook’s removal.

The high court rejected the president’s first bid because Cook was not given proper legal due process, and said any new attempt to fire her would require additional steps.

Under the Federal Reserve Act, a president can remove a Fed governor only “for cause,” CNBC reported.

In August, White House aide Dan Scavino told Cook in a letter that the president was again “considering” firing her in connection with the mortgage allegations.

“As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” Trump states in the memo establishing the committee of inquiry. The memo is addressed to Attorney General Todd Blanche.

Senator Assails Trump

“To assist me in carrying out that responsibility, the Committee shall investigate the allegations against Governor Cook and report to me whether there is ‘cause’ for Governor Cook’s removal,” within the meaning identified by the Supreme Court, it says.

Sen. Elizabeth Warren, D-Mass., in a statement accused Trump of “convening an illegitimate show trial in his dangerous quest to illegally take over our nation’s central bank.”

“Instead of playing judge in a kangaroo court of his own making, Trump should end the war in Iran and cancel his chaotic tariffs,” said Warren, the top-ranking Democrat on the Senate’s Banking, Housing, and Urban Affairs Committee.