• Trump establishes three-member committee investigating mortgage fraud allegations against Fed Governor Lisa Cook
• Inquiry follows Supreme Court ruling that Cook was denied due process
• Closed White House hearing scheduled for November 5
• Committee comprises three Trump administration nominees
• Cook's lawyers question the legitimacy and independence of proceedings
• Democrats accuse Trump of attempting to control the Federal Reserve
• Dispute follows separate investigation into Fed headquarters renovation
• Case raises significant questions about central bank independence and presidential removal powers

President Donald Trump has intensified his confrontation with the Federal Reserve by establishing a three-member committee to investigate mortgage fraud allegations against Governor Lisa Cook, renewing concerns about political interference in the central bank's independence.

The White House announced Friday that the committee will examine allegations that Cook made false statements in mortgage applications, reviving a dispute that began in August 2025 when Trump first attempted to remove her from office.

The latest development follows a Supreme Court ruling in June that Cook had been denied due process during the administration's earlier removal attempt.

In a 5-4 decision, the justices determined that Cook must receive sufficient information about the allegations and an opportunity to respond before a final removal decision can be made.

Chief Justice John Roberts emphasized that any dismissal must follow an appropriate procedural framework, allowing Cook to challenge the evidence before courts assess whether grounds for removal exist.

The administration's latest approach appears designed to address those procedural requirements.

As Dan Ennis, Banking Dive senior editor, noted in a recent leader column, the committee resembles a historical precedent cited by Roberts involving President William Howard Taft, who established a similar inquiry in 1912 to examine the potential dismissal of federal officials.

Trump defended the initiative as an exercise of presidential responsibility.

"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," he said in a memorandum released Friday.

Cook has been instructed to attend a closed hearing at the White House on November 5. She may submit a written statement at least three days beforehand and attend with legal representation. A transcript will subsequently be published.

The committee comprises National Economic Council Director Kevin Hassett, Labor Secretary and acting Office of Government Ethics head Keith Sonderling, and Equal Employment Opportunity Commission Chair Andrea Lucas. All three are Trump nominees.

Their appointments have prompted questions about the independence of the proceedings.

Cook's attorneys, Abbe Lowell and Norm Eisen, expressed serious reservations about whether the hearing could satisfy legal standards.

They said they had "grave doubts that this 'hearing' is a legitimate one that would conform to the law."

The dispute comes amid broader tensions between the administration and Federal Reserve leadership.

A recent investigation by the Fed's Office of Inspector General concluded that the central bank mismanaged a $2.5 billion headquarters renovation but identified no criminal violations.

Attorney General Todd Blanche subsequently confirmed that the Justice Department would not reopen its criminal investigation into former Fed Chair Jerome Powell concerning the project.

Nevertheless, Trump has continued pressing Powell to resign, while Hassett has publicly suggested the former chair should leave the Fed board.

Democratic lawmakers have condemned the Cook inquiry as another attempt to exert political control over monetary policy.

Senator Elizabeth Warren characterized the proceedings as an "illegitimate show trial," while Senate Minority Leader Chuck Schumer accused Trump of attempting to seize control of the central bank.

Cook's lawyers maintain that the allegations do not justify her removal and have questioned whether the administration has already predetermined the outcome.

They said an objective examination would establish that Cook had not committed mortgage fraud and that no lawful basis existed for dismissing her.

The Federal Reserve declined to comment on the committee's establishment.

The confrontation raises wider questions about the safeguards protecting central bank officials from presidential dismissal and the extent to which allegations of misconduct can justify removal.

With the November hearing approaching, the dispute could become another significant test of Federal Reserve independence, presidential authority and the legal protections afforded to monetary policymakers.