The short version
- Lawyers for Lisa Cook argue the White House inquiry panel is biased because all three members are Trump appointees, including one who has already stated there is cause for her removal.
- Cook’s legal team states she cannot attend a scheduled November hearing due to official Federal Reserve duties in Europe and proposes a date after the December policy meeting.
- The dispute centers on whether President Trump can remove Cook from her position, a move that would challenge the traditional independence of the central bank from political pressure.
Legal representatives for Federal Reserve Governor Lisa Cook have formally challenged the legitimacy of a White House committee established to investigate allegations against her. In a letter delivered Tuesday, attorney Abbe Lowell described the panel as demonstrably biased, arguing that its composition undermines the appearance of fairness and independence essential to the central bank’s operations. The legal team expressed significant concerns regarding the objectivity and fitness of the committee members for their assigned investigative purpose.
The controversy stems from President Donald Trump’s ongoing efforts to remove Cook from her seat on the Federal Reserve Board of Governors. Trump has accused Cook of committing mortgage fraud in 2021, prior to her appointment to the board, a charge she has consistently denied. No criminal charges have been filed in connection with these allegations. The White House recently announced the formation of a three-member committee of inquiry to determine whether sufficient cause exists for her dismissal, a move designed to satisfy procedural requirements outlined by the Supreme Court.
The Supreme Court ruled earlier this year that Cook could remain in her position while litigation continued. However, the court’s decision included a footnote suggesting that the president might succeed in removing her if he provided adequate notice and an opportunity to respond to the allegations. The current inquiry panel is intended to fulfill those conditions. Under existing law governing the Federal Reserve, a president may only dismiss a governor for cause, though the Supreme Court did not explicitly rule on whether Cook’s alleged actions met that specific legal standard.
Cook’s lawyers highlighted structural conflicts of interest within the committee as a primary reason for their objection. The panel includes Kevin Hassett, a top economic adviser to Trump, who has publicly stated that the president has cause to fire Cook. The other two members are Labor Secretary Keith Sonderling and Equal Employment Opportunity Commission Chair Andrea Rich, both of whom were appointed by Trump. Lowell’s letter argued that a hearing featuring members with pre-existing conclusions about the case does not respect the history or appearance of independence associated with the Federal Reserve.
Scheduling conflicts also play a central role in the current standoff. Lowell informed William Scharf, counsel to President Trump, that Cook will be unable to participate in a hearing scheduled for November 5. The governor will be executing her official duties at financial and monetary policy meetings in Europe during that time. The letter indicated that the earliest Cook could appear before the committee would be after the Federal Reserve’s policy meeting on December 8 and 9.
The legal team did not entirely rule out participation in the process, leaving open the possibility that Cook might appear before the panel at a later date. However, they emphasized that any proceeding must address unspecified additional allegations and provide a clear schedule for the disclosure of evidence. The lawyers noted that there has been no explanation for why certain evidence was not produced previously, further complicating the procedural fairness of the inquiry.
This conflict represents a significant test of the Federal Reserve’s traditional independence from political influence. No president has ever fired a Fed governor, a precedent that underscores the central bank’s separation from direct executive control. Trump has repeatedly demanded that the central bank lower its key interest rate, and economists have warned that his actions threaten the institution’s autonomy. Earlier this year, the Justice Department attempted to investigate then-Chair Jerome Powell regarding testimony about a building renovation, but those efforts were dropped after a judge threw out subpoenas.
Cook was appointed by former President Joe Biden and holds the distinction of being the first Black woman on the Federal Reserve Board. Her tenure has been marked by this legal battle, which began with Trump’s initial attempt to fire her in August 2025. The Supreme Court’s intervention allowed her to remain in office temporarily, but the current inquiry marks a renewed effort by the administration to remove her. The outcome of this process could have lasting implications for the relationship between the executive branch and independent regulatory agencies.
The White House memo announcing the committee stated that it would ultimately recommend whether there is cause to fire Cook. The administration views this step as necessary to comply with judicial guidance while pursuing its objective. Critics, including Cook’s legal team, argue that the process is designed to legitimize a predetermined outcome rather than conduct a genuine investigation. As the November hearing date approaches, the tension between executive authority and central bank independence remains unresolved.
The situation continues to evolve as both sides navigate legal and procedural hurdles. The Federal Reserve’s role in setting monetary policy requires public confidence in its neutrality and expertise. Any perception that political considerations are influencing personnel decisions could undermine that trust. The coming weeks will likely see further legal maneuvering as Cook’s team seeks to protect her position while the White House pushes forward with its inquiry.
Sources behind this briefing
Go to the original reporting
- PBS NewsHour↗Lawyers for Federal Reserve's Lisa Cook say White House hearing set up by Trump is 'biased'
