Federal Reserve Governor Lisa Cook is challenging President Donald Trump’s latest effort to remove her from office, with her legal team questioning whether a newly announced White House investigation can deliver a fair and impartial hearing.
In a letter sent Tuesday, Cook’s lawyer, Abbe Lowell, raised concerns about the composition of a three-member committee appointed to examine allegations of mortgage fraud against the governor. Cook has denied the accusations and maintains that there are no grounds for her dismissal.
Trump has been seeking to remove Cook for more than a year as his administration presses for greater influence over the Federal Reserve. The president has repeatedly criticized the central bank for resisting calls to cut interest rates, raising concerns about political pressure on an institution expected to operate independently.
Earlier this month, Trump announced a fresh investigation into Cook and established a committee to review the allegations. He subsequently indicated that he would move forward with her removal if the panel recommended it.
Lowell argued that the proposed process raises serious questions about fairness, pointing to the involvement of White House economic policy adviser Kevin Hassett. Hassett had previously urged Cook to step aside temporarily and suggested that Trump had grounds to dismiss her.
In his letter, Lowell said a hearing involving members whose impartiality could reasonably be questioned, combined with unclear procedures for disclosing evidence, would undermine the appearance and longstanding tradition of Federal Reserve independence.
The dispute also involves a scheduling conflict. The White House has proposed November 5 for the hearing, but Cook will be attending financial and monetary policy meetings in Europe as part of her official responsibilities, Lowell said.
According to the letter, the earliest Cook could participate in a hearing would be after the Federal Reserve’s December 8-9 policy meeting. Her legal team has maintained that a properly conducted review would demonstrate that the allegations do not justify removing her from office.
The latest confrontation follows a Supreme Court ruling earlier this year that limited Trump’s ability to dismiss Federal Reserve governors at will. The court emphasized that the central bank must retain political independence, both in practice and in public perception.
However, the ruling left open the possibility of removing a governor if the administration provides a fair process in which the official can examine the allegations and respond to the evidence. The White House’s latest initiative appears designed to pursue that route.
The outcome could have implications beyond Cook’s position, placing the balance between presidential authority and the Federal Reserve’s independence under renewed scrutiny.
The central bank raised its benchmark interest rate in September, with another increase expected at its final policy meeting of the year.
