President Trump's latest effort to remove Federal Reserve Governor Lisa Cook has drawn scrutiny over its political motivations. One day after announcing a special committee to investigate her, Trump told reporters he believes she is 'dishonest' and an 'automatic no vote' on lower interest rates, bypassing the official reason for the inquiry: year-old mortgage fraud allegations that have not been charged or proven. The allegations, first raised by housing director Bill Pulte, claim Cook designated two homes as primary residences on mortgage applications.
Her lawyers call one instance an oversight and provide records showing proper classification. Cook, the first Black woman on the Fed board, faces a hearing scheduled for Nov. 5, though her legal team cites scheduling conflicts and questions the inquiry’s legitimacy. Trump’s first attempt to fire her was blocked by the Supreme Court in June, which ruled she was not given sufficient opportunity to defend herself.
While the new hearing appears to meet the court’s technical requirements, critics argue the process is pretextual. Kathryn Judge of Columbia Law School noted the administration seems to be going through procedural hurdles with a desired outcome already decided. The White House declined to answer detailed questions, but spokesman Matthew Middleton defended the hearing as fair and part of Trump’s 'constitutional duty.' The scrutiny of Cook fits a broader pattern of Trump pressuring the Fed to lower rates and targeting officials who oppose him, including former Chair Jerome Powell, who was investigated over a Fed headquarters renovation but found innocent.
Source: New York Times Business · Summarized by HeadlinesBriefing