loading
loading
An attorney for Lisa Cook voiced strong doubts that President Donald Trump's committee investigating mortgage fraud allegations against the Federal Reserve governor would be fair and objective. The lawyer, Abbe Lowell, said the committee is plagued by issues that undermine the appearance of the Fed's independence, including "demonstrably biased members" and "unspecified additional allegations" against Cook. Those and other issues "would have to be addressed before a hearing could occur" in the probe, Lowell wrote in a letter sent Tuesday to Will Scharf, Trump's aide and counsel. No such hearing could take place until at least December, weeks later than the initially scheduled date, Lowell insisted. The letter came three days after Trump slammed Cook as "dishonest" and griped that she was an "automatic no vote" — apparently referring to her opposition to cutting interest rates, which the president strongly desires. Cook last voted to cut rates in December 2025, siding with the majority. The Fed unanimously voted to raise rates after its most recent meeting in September. "She shouldn't be in an important position," Trump said of Cook in those remarks to reporters after returning from a rally in Tennessee on Saturday. White House spokesman Matthew Middleton said in response to Lowell's letter that Trump "is performing his constitutional duty in evaluating Lisa Cook's conduct and eligibility to continue serving as a governor on the Federal Reserve." "The Constitution charges the President with ensuring that the laws are faithfully executed and that the conduct of members of the Board of Governors of the Federal Reserve System is above reproach," Middleton said in a statement. An in-person hearing at the White House is currently scheduled for Nov. 5, according to Trump's Oct. 7 presidential memo establishing the "committee of inquiry" into Cook. Cook's lawyers did not immediately rule out participating in that hearing, and in fact said the Fed governor "welcomes the opportunity to present the facts so she can clear her name," despite their concerns. But in Tuesday's letter, Lowell said Cook cannot attend a hearing on Nov. 5 because she "will be executing her official duties as Governor at financial and monetary policy meetings in Europe." After that, Cook will immediately start preparing for the next meeting of the Federal Open Market Committee in early December, Lowell said. The White House did not immediately respond when asked by CNBC if the scheduled hearing would be moved in light of Cook's alleged scheduling conflicts. Lowell also said he needs time to speak with Cook about issues raised by the White House's most recent correspondence, as well as to prepare her for any possible hearing, "which, because of her being in Asia on Federal Reserve duties, cannot be done until she returns." "With all of that (and court hearings I have scheduled in November), the earliest date for any hearing would need to be in December following the FOMC meeting," Lowell wrote Scharf. Trump established the three-member committee two months after reviving his long-running effort to fire Cook, an appointee of former President Joe Biden, from the central bank's board of governors. The Supreme Court in late June blocked Trump's first attempt to remove Cook, ruling that she was not given sufficient due process under federal law. But that decision did not stop Trump from trying again. Middleton said in his statement, "The President is going beyond what the Supreme Court required by offering Lisa Cook an in-person hearing that will be conducted in a fair and open process." But Lowell wrote Tuesday, "We have significant concerns regarding the objectivity and fitness of the committee," which comprises three executive branch officials, including top Trump economic aide Kevin Hassett. Hassett "already has publicly insinuated that the President has 'cause' to fire Governor Cook," Lowell noted, citing the economic advisor's comments from August 2025. Hassett in those remarks also accused Cook of "making a partisan stance contrary to the independence of the Fed" by refusing to step aside while a Justice Department investigation played out into the mortgage fraud allegations, which Cook denies. The comments suggest Hassett has already prejudged the case, Lowell told Scharf, "surely belying your assertion that the 'hearing' as proposed would be 'substantive and fair.'" "A hearing with demonstrably biased members, unspecified additional allegations, and an unclear schedule for the disclosure of any additional evidence – with no explanation for why it was not previously produced – is not a process that respects the appearance or history of independence," Lowell wrote.
document fetched 2026-10-15 02:59 · canonical https://cnbc.com/2026/10/14/lisa-cook-trump-committee-hearing.html