Federal Reserve Governor Lisa Cook's attorney, Abbe Lowell, has raised concerns regarding the impartiality of a White House committee established by President Donald Trump to investigate mortgage fraud allegations against Cook. In a letter dated October 13, Lowell specifically questioned the inclusion of National Economic Council Director Kevin Hassett on the three-member panel, citing Hassett's prior actions in pressuring Cook to take leave and suggesting that Trump had 'cause' to remove her from the Federal Reserve. Lowell argued that the current process lacks transparency and fairness, referencing unspecified additional allegations and an unclear schedule for evidence disclosure, which he claims undermines the appearance and history of the Federal Reserve's independence [1].
Lowell has also requested a postponement of the panel's hearing, originally scheduled for November 5, due to Cook's official travel in Europe for financial and monetary policy meetings. He stated that Cook would not be available until after the Federal Reserve's policy meeting on December 8–9. The committee, formed by a Trump memorandum on October 7, is tasked with determining whether the mortgage-related allegations against Cook warrant her removal. The panel consists of Hassett, the chairman of the Equal Employment Opportunity Commission, and the director of the Office of Government Ethics. Under the memorandum, Cook is to receive the evidence against her and will have up to four hours to present her defense in a closed-door hearing, after which the committee will make a recommendation to Trump [1].
The allegations stem from claims that Cook designated properties in Georgia and Michigan as primary residences on separate mortgage agreements and subsequently rented out the Georgia property. Cook has denied any wrongdoing, with her attorneys asserting that the Georgia designation was an inadvertent error and that Michigan has consistently been her primary residence. Trump has been seeking Cook's removal since August 2025. The Supreme Court ruled in June, by a 5-4 vote, that Trump could not remove Cook without providing adequate notice and an opportunity for her to contest the allegations, leaving open the possibility of her removal if due process is followed [1].
This dispute is seen as having broader implications for the Federal Reserve's independence from political influence. Fox Business has reached out to Lowell for further comment, but no additional statements have been provided as of now [1].
CONCLUSION
The ongoing investigation into Lisa Cook and the challenge to the impartiality of the review panel highlight tensions between the White House and the Federal Reserve. The outcome of this process could have significant implications for the central bank's independence and governance. Market participants are likely to monitor developments closely, especially regarding any potential changes to Fed leadership.