Trump opens probe into Lisa Cook’s mortgage fraud allegations
President Donald Trump has established a committee to investigate Federal Reserve Governor Lisa Cook over mortgage fraud allegations, renewing his effort to remove her despite a Supreme Court ruling in June that her initial firing was unconstitutional. The move raises fresh concerns about political pressure on the Federal Reserve's independence, with a formal hearing scheduled for 5 November to consider the allegations, at which Cook will be able to present her defence.
Cook, who was appointed by Joe Biden in 2022 as the Federal Reserve's first Black governor, was fired in August 2025 after Trump claimed she had committed fraud by listing two properties in Georgia and Michigan as her primary residence and failing to report rental income. The Supreme Court ruled 5-4 in June that the original firing violated proper procedure, as Trump did not give Cook an opportunity to dispute the allegations beforehand. Cook's legal representatives have maintained that the claims are based on clerical errors; she will submit a written statement with her evidence and face questioning at the November hearing.
- Trump launches new effort to remove Fed Governor Cook despite court ruling against first firing
- Cook was dismissed in August 2025 over mortgage fraud allegations; court reinstated her in June
- Hearing set for November as concerns grow about Fed independence under political pressure
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Lisa Cook is a governor of the Federal Reserve, the US central bank, and was its first Black governor when appointed in 2022 by President Joe Biden. In August 2025, President Trump dismissed her from the role, claiming she had committed mortgage fraud.
The fraud allegations centre on Cook listing two properties, one in Georgia and one in Michigan, as her primary residence and failing to report rental income from one of them. In June this year, the Supreme Court ruled 5-4 that Trump's original dismissal was unconstitutional because it breached proper procedure – Trump had not given Cook a fair opportunity to respond to the allegations before firing her.
The situation reflects broader questions about the Federal Reserve's independence from political pressure. The central bank is designed to operate free from interference by elected officials so it can carry out its duties independently. Cook's legal representatives have maintained that the property issues stem from clerical errors rather than intentional fraud.
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The case for
Those supporting the investigation argue that a president has legitimate authority to examine potential misconduct by government officials, and that allegations concerning misrepresented primary residences and unreported income deserve proper scrutiny. The Supreme Court's ruling addressed the procedural defect—the lack of opportunity to respond—rather than the merits of the allegations themselves, and the forthcoming November hearing now provides Cook with the defence she was previously denied. Ensuring accountability through proper process is consistent with constitutional governance and responsible administration.
The case against
Critics contend this appears to be a continuation of politically motivated efforts to remove a Biden appointee rather than genuine law enforcement. They emphasise concerns about Federal Reserve independence being compromised by political pressure, note that Cook's legal representatives characterise the allegations as clerical errors, and point to the pattern of firing, Supreme Court reversal, and renewed investigation as indicative of Trump using his office to target her. The particular scrutiny applied to the Federal Reserve's first Black governor raises additional questions about whether comparable administrative matters prompt similar investigations for other officials.
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Originally published by The Guardian as “Trump establishes committee to investigate Fed governor Lisa Cook”.