Trump orders new investigation of Fed's Lisa Cook
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Federal Reserve governor Lisa Cook speaking at a conference in July. Photo: Daniel Heuer/Bloomberg via Getty Images.
President Trump on Friday ordered a new investigation into allegations of mortgage fraud against Federal Reserve governor Lisa Cook, directing a committee to question the central bank official at a White House hearing next month.
Why it matters: Trump is pursuing another path to remove Cook after the Supreme Court blocked his initial attempt earlier this year.
Driving the news: The three-person committee will investigate the allegations against Cook and determine whether there is "cause" for her removal, according to a White House memo.
- The committee will include a White House economic policy official and the heads of the Office of Government Ethics and Equal Employment Opportunity Commission.
- The memo says that Cook must appear at a closed-door hearing on Nov. 5 to present evidence and respond to questions.
- Cook has an opportunity to submit a final written response by Nov. 10, the memo says. Then the committee will recommend to Trump whether there are grounds to fire her.
Flashback: Trump moved to fire Cook last summer over allegations that she misrepresented information on mortgage applications, an unprecedented attempt to remove a Fed official that escalated to the Supreme Court.
- Cook denied wrongdoing and challenged her dismissal in court, arguing that the president lacked legal grounds to remove her.
- The Supreme Court ruled 5-4 in June that Cook could remain in her post, finding that the Trump administration failed to give Cook adequate notice and an opportunity to respond before firing her.
Zoom in: Since then, the White House revived its effort to fire Cook.
- The administration sent her a letter formally notifying her that Trump was considering her removal, giving her 21 days to respond to the allegations.
- Cook submitted a response denying the allegations and arguing there was no legal basis to fire her.
What they're saying: Representatives for Cook did not immediately respond to a request for comment.
CNBC earlier reported news of the memo.
