Trump orders Fed Governor Lisa Cook to a closed hearing on firing her

What happened

President Trump has ordered Lisa Cook, a governor of the Federal Reserve, to a closed hearing at the White House on November 5.¹ Three officials he named will weigh the charge that she made false statements on mortgages.¹ The White House says that in the summer of 2021 she signed mortgages on a house in Michigan and a condo in Atlanta two weeks apart, and promised on both that the home would be her main residence.³ A president can fire a Fed governor only "for cause," and the three will recommend whether he has it.⁵¹

• President Trump has ordered Lisa Cook, a governor of the Federal Reserve, to a closed hearing at the White House on November 5.¹
• Three officials he named will weigh the charge that she made false statements on mortgages.¹
• The White House says that in the summer of 2021 she signed mortgages on a house in Michigan and a condo in Atlanta two weeks apart, and promised on both that the home would be her main residence.³
• A president can fire a Fed governor only "for cause," and the three will recommend whether he has it.⁵¹

This is his second try.² Last year he sent her a letter firing her, and in June the Supreme Court kept her in office because he had not given her a chance to answer the charges, while leaving him free to try again.² If he succeeds, he gets to fill her seat on the Fed's seven-member board, whose governors vote on interest rates alongside five presidents of regional Fed banks.¹⁹²⁵ Three of the seven, including the chair, Kevin Warsh, are already his appointees, and his pick for a fourth seat would need Senate confirmation.⁴⁰²⁰¹⁹

• This is his second try.²
• Last year he sent her a letter firing her, and in June the Supreme Court kept her in office because he had not given her a chance to answer the charges, while leaving him free to try again.²
• If he succeeds, he gets to fill her seat on the Fed's seven-member board, whose governors vote on interest rates alongside five presidents of regional Fed banks.¹⁹²⁵
• Three of the seven, including the chair, Kevin Warsh, are already his appointees, and his pick for a fourth seat would need Senate confirmation.⁴⁰²⁰¹⁹

Cook denies wrongdoing and has not been charged with a crime.²⁵ Her lawyers have not said whether she will go; first, they say, they want to judge whether the hearing is "a genuine one and not simply a box checking exercise."²⁵⁷ Whatever the committee recommends, the decision is Trump's.¹²⁶

• Cook denies wrongdoing and has not been charged with a crime.²⁵
• Her lawyers have not said whether she will go; first, they say, they want to judge whether the hearing is "a genuine one and not simply a box checking exercise."²⁵⁷
• Whatever the committee recommends, the decision is Trump's.¹²⁶

Who Cook is, and the charge against her

Cook taught economics at Michigan State University until President Biden put her on the Fed's board, which she joined in May 2022 as its first Black woman.¹⁴²⁵ He reappointed her in 2023, to a term that runs until January 2038.¹⁴

• Cook taught economics at Michigan State University until President Biden put her on the Fed's board, which she joined in May 2022 as its first Black woman.¹⁴²⁵
• He reappointed her in 2023, to a term that runs until January 2038.¹⁴

Both loans came the year before she joined the Fed, one on a house in Ann Arbor, Michigan, and one on a condo in Atlanta.³¹⁴ Its letter says those promises "benefited you by decreasing your interest rates," since loans on second homes typically cost 0.25 to 0.50 percentage points more.³ It also says the Atlanta condo was listed for rent in September 2022.³

• Both loans came the year before she joined the Fed, one on a house in Ann Arbor, Michigan, and one on a condo in Atlanta.³¹⁴
• Its letter says those promises "benefited you by decreasing your interest rates," since loans on second homes typically cost 0.25 to 0.50 percentage points more.³
• It also says the Atlanta condo was listed for rent in September 2022.³

The accusation came from Bill Pulte, who runs the Federal Housing Finance Agency, in a criminal referral he sent the Justice Department on August 15, 2025.³ Three weeks later AP, citing one person familiar with the matter, reported that investigators had issued subpoenas in an inquiry into the two homes.³⁶ The department would not comment, and more than a year later no charge has followed.³⁶²⁵

• The accusation came from Bill Pulte, who runs the Federal Housing Finance Agency, in a criminal referral he sent the Justice Department on August 15, 2025.³
• Three weeks later AP, citing one person familiar with the matter, reported that investigators had issued subpoenas in an inquiry into the two homes.³⁶
• The department would not comment, and more than a year later no charge has followed.³⁶²⁵

Cook's lawyers call her signing of the Atlanta mortgage as her primary residence "an entirely inadvertent oversight," and say an oversight is not fraud.⁴ She did list the condo for rent, they say, but only briefly, and decided not to rent it.⁴

• Cook's lawyers call her signing of the Atlanta mortgage as her primary residence "an entirely inadvertent oversight," and say an oversight is not fraud.⁴
• She did list the condo for rent, they say, but only briefly, and decided not to rent it.⁴

Why a hearing now

Trump's first attempt came within days of the referral going public.¹¹² On August 20, 2025, Pulte posted pages of it; within thirty minutes Trump posted "Cook must resign, now!!!" and five days later he sent her the letter firing her.¹¹² Cook sued, and a federal judge, Jia Cobb, kept her in her job while the case went on.²

• Trump's first attempt came within days of the referral going public.¹¹²
• On August 20, 2025, Pulte posted pages of it; within thirty minutes Trump posted "Cook must resign, now!!!" and five days later he sent her the letter firing her.¹¹²
• Cook sued, and a federal judge, Jia Cobb, kept her in her job while the case went on.²

The law that protects her seat gives governors 14-year terms and never defines the cause a president needs to cut one short.⁵ On June 29 the Supreme Court, 5 to 4, kept Cook in office, holding that she was owed "some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due," and had been given none.³¹² It left aside whether she had done anything wrong, and said Trump could try again.² That chance to respond, the Court added, could come "on written materials only," with no hearing in person.²

• The law that protects her seat gives governors 14-year terms and never defines the cause a president needs to cut one short.⁵
• On June 29 the Supreme Court, 5 to 4, kept Cook in office, holding that she was owed "some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due," and had been given none.³¹²
• It left aside whether she had done anything wrong, and said Trump could try again.²
• That chance to respond, the Court added, could come "on written materials only," with no hearing in person.²

Trump tried again on paper first.³ On August 5 the White House sent Cook notice that he was considering removing her, along with its evidence and 21 days to answer, and her lawyers answered on August 26.³⁴ Six weeks later, on October 7, he signed the memo that adds the committee and a hearing in person, the step the Court said he could do without.³¹¹² The memo does not mention her lawyers' answer, or say why the written exchange was not enough.¹

• Trump tried again on paper first.³
• On August 5 the White House sent Cook notice that he was considering removing her, along with its evidence and 21 days to answer, and her lawyers answered on August 26.³⁴
• Six weeks later, on October 7, he signed the memo that adds the committee and a hearing in person, the step the Court said he could do without.³¹¹²
• The memo does not mention her lawyers' answer, or say why the written exchange was not enough.¹

The three officials who will hear her are Kevin Hassett, Trump's chief economic adviser; Andrea Lucas, who chairs the Equal Employment Opportunity Commission; and Keith Sonderling, the labor secretary and acting head of the Office of Government Ethics.¹²²²⁷ For up to four hours they, or Justice Department lawyers they choose, can question her.¹ She can bring a lawyer and offer argument, written evidence and written statements from witnesses.¹

• The three officials who will hear her are Kevin Hassett, Trump's chief economic adviser; Andrea Lucas, who chairs the Equal Employment Opportunity Commission; and Keith Sonderling, the labor secretary and acting head of the Office of Government Ethics.¹²²²⁷
• For up to four hours they, or Justice Department lawyers they choose, can question her.¹
• She can bring a lawyer and offer argument, written evidence and written statements from witnesses.¹

Whether a mortgage form is cause to fire her

Neither side disputes that she signed both forms, so the fight is over whether those signatures amount to cause.⁴ The Supreme Court has already settled that she gets a chance to answer before any firing.²

• Neither side disputes that she signed both forms, so the fight is over whether those signatures amount to cause.⁴
• The Supreme Court has already settled that she gets a chance to answer before any firing.²

Why Trump says it is

Trump frames it as a matter of honesty: his memo says it is his job to fire "subordinates who cannot be trusted to tell the truth and follow the law."¹ His lawyers told the Supreme Court that deceit or gross negligence by a financial regulator in her own financial dealings is cause.⁸ And the White House's August letter says she cannot have meant both promises: it was "impossible that you intended to honor both."³

• Trump frames it as a matter of honesty: his memo says it is his job to fire "subordinates who cannot be trusted to tell the truth and follow the law."¹
• His lawyers told the Supreme Court that deceit or gross negligence by a financial regulator in her own financial dealings is cause.⁸
• And the White House's August letter says she cannot have meant both promises: it was "impossible that you intended to honor both."³

Why Cook says it is not

Her lawyers say the Atlanta form was an honest mistake, made in her private life before she joined the Fed.⁴ They also say neither the White House's letter nor Pulte's referral declares that she actually got a lower rate on any property.⁴ The letter does say the promises lowered her rates, but its only figure is the typical gap between loans on main homes and second homes, not the rate on her own loans.³ By their account, she started out by asking the lender's website about a "vacation home" mortgage.⁴

• Her lawyers say the Atlanta form was an honest mistake, made in her private life before she joined the Fed.⁴
• They also say neither the White House's letter nor Pulte's referral declares that she actually got a lower rate on any property.⁴
• The letter does say the promises lowered her rates, but its only figure is the typical gap between loans on main homes and second homes, not the rate on her own loans.³
• By their account, she started out by asking the lender's website about a "vacation home" mortgage.⁴

A printout from that website, dated May 28, 2021, lists the Atlanta condo's use as "Vacation Home," and her lawyers say it went to the same lender.¹² But it is a rate quote for a 15-year loan that warns the actual rate could be higher, and the Atlanta mortgage she signed in July ran 30 years.¹²⁴¹ Documents AP obtained show that on a form for a security clearance she called the condo a "second home," and county tax records show she has never claimed Georgia's homestead exemption on it, the property-tax break for a primary residence.³⁵

• A printout from that website, dated May 28, 2021, lists the Atlanta condo's use as "Vacation Home," and her lawyers say it went to the same lender.¹²
• But it is a rate quote for a 15-year loan that warns the actual rate could be higher, and the Atlanta mortgage she signed in July ran 30 years.¹²⁴¹
• Documents AP obtained show that on a form for a security clearance she called the condo a "second home," and county tax records show she has never claimed Georgia's homestead exemption on it, the property-tax break for a primary residence.³⁵

Her lawyers also say she is being singled out.⁴ Trump himself, they note, reportedly took out primary-residence mortgages on two Florida homes seven weeks apart in 1993.⁴ Treasury Secretary Scott Bessent and Attorney General Todd Blanche have done the same on more than one home, they say, yet Pulte has made no public referral against any of them.⁴

• Her lawyers also say she is being singled out.⁴
• Trump himself, they note, reportedly took out primary-residence mortgages on two Florida homes seven weeks apart in 1993.⁴
• Treasury Secretary Scott Bessent and Attorney General Todd Blanche have done the same on more than one home, they say, yet Pulte has made no public referral against any of them.⁴

What the courts have said

Judge Cobb held last year that conduct from before a governor took office cannot, by itself, be cause, and the mortgages came a year before Cook joined the Fed.¹¹¹⁴ The Supreme Court adopted neither her view nor the government's, and left that question open.² Instead it set "a substantial threshold" for cause, to be judged by how serious the misconduct is and how closely it bears on the job.² A court, it said, may also ask whether a firing is really an effort to install someone "more congenial."²

• Judge Cobb held last year that conduct from before a governor took office cannot, by itself, be cause, and the mortgages came a year before Cook joined the Fed.¹¹¹⁴
• The Supreme Court adopted neither her view nor the government's, and left that question open.²
• Instead it set "a substantial threshold" for cause, to be judged by how serious the misconduct is and how closely it bears on the job.²
• A court, it said, may also ask whether a firing is really an effort to install someone "more congenial."²

Where interest rates come in

The government itself told the Supreme Court that "for cause" rules out removing a governor "for policy disagreement," while covering doubts about her integrity, the reason Trump gives.² On the evening of October 10 Trump gave two reasons for forming the committee, and one of them was how she votes.¹⁵

• The government itself told the Supreme Court that "for cause" rules out removing a governor "for policy disagreement," while covering doubts about her integrity, the reason Trump gives.²
• On the evening of October 10 Trump gave two reasons for forming the committee, and one of them was how she votes.¹⁵

Her record has no dissents: she has voted with the majority on every rate decision.²² When the Fed raised rates 12 to 0 on September 16, she voted with Trump's three appointees, Warsh, Michelle Bowman and Christopher Waller.²¹ Trump answered that rates "should be 1%, or less."³³

• Her record has no dissents: she has voted with the majority on every rate decision.²²
• When the Fed raised rates 12 to 0 on September 16, she voted with Trump's three appointees, Warsh, Michelle Bowman and Christopher Waller.²¹
• Trump answered that rates "should be 1%, or less."³³

The hearing itself

Cook's lawyers say she welcomes the chance to "present the facts so she can clear her name," but that Trump's "repeated statements that he has already decided to fire" her leave them doubting the hearing is genuine.⁷ They single out Hassett, who said on August 27, 2025, two days after Trump's letter firing her, that she should take leave from the Fed during the legal fight.³⁹² Abbe Lowell, one of her lawyers, said on CNN that the White House needs to explain why Hassett is on the committee, and that he does not know what role the Justice Department will play.¹³

• Cook's lawyers say she welcomes the chance to "present the facts so she can clear her name," but that Trump's "repeated statements that he has already decided to fire" her leave them doubting the hearing is genuine.⁷
• They single out Hassett, who said on August 27, 2025, two days after Trump's letter firing her, that she should take leave from the Fed during the legal fight.³⁹²
• Abbe Lowell, one of her lawyers, said on CNN that the White House needs to explain why Hassett is on the committee, and that he does not know what role the Justice Department will play.¹³

The public will not be there, and the memo does not say it will ever see what was said: it says the hearing "shall be transcribed" and nothing about releasing the transcript.¹

• The public will not be there, and the memo does not say it will ever see what was said: it says the hearing "shall be transcribed" and nothing about releasing the transcript.¹

What happens next

Every step before the committee's report has a date; Trump's decision does not.¹²⁶ The hearing also falls the day before the two sides in her lawsuit over the first firing owe Judge Cobb a joint report on the case.⁶

• Every step before the committee's report has a date; Trump's decision does not.¹²⁶
• The hearing also falls the day before the two sides in her lawsuit over the first firing owe Judge Cobb a joint report on the case.⁶

If he fires her, she can go back to court, and only then will judges weigh whether the charges amount to cause.²

• If he fires her, she can go back to court, and only then will judges weigh whether the charges amount to cause.²

Until Trump decides, Cook is still a governor, with a vote at the Fed's next rate meeting on October 28.²⁶

• Until Trump decides, Cook is still a governor, with a vote at the Fed's next rate meeting on October 28.²⁶