President Donald Trump opened another chapter in his effort to fire Federal Reserve Governor Lisa Cook Friday by establishing a “committee of inquiry” to investigate allegations that she made false statements in mortgage applications.
The inquiry will include a hearing at the White House Nov. 5, Trump said in a written memo, that Cook “shall” attend to answer questions from the committee. The hearing wouldn't be public but a transcript would be published, the memo said.
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Trump’s extraordinary demand that Cook testify before the committee will likely renew concerns about threats to the Federal Reserve's independence as the president demands the central bank cut its key interest rate. Just last month, the Fed raised its key rate instead, led by Chairman Kevin Warsh, whom Trump appointed earlier this year.
“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,” Trump wrote in the memorandum.
Trump and some of his economic advisers have blamed the Fed's broader rate-setting committee, which includes 12 voting members and 19 officials in total, for the rate hike. Cook is one of the 12 participants on the committee that votes on interest-rate decisions. The vote to lift rates Sept. 16 was unanimous.
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The move follows a Supreme Court ruling in June that Cook could keep her job after Trump sought to fire her last year. That ruling included a footnote that said nothing prevented Trump from “trying again” as long as she was given proper notice and an opportunity to respond to the charges.
Cook has denied any wrongdoing and has not been charged with a crime.
