Trump creates committee to investigate Fed governor Lisa Cook

· Economy · United States

President Donald Trump announced Friday he is establishing a committee to investigate Federal Reserve governor Lisa Cook over allegations of mortgage fraud, renewing his efforts to oust her despite a Supreme Court ruling that her firing was unconstitutional. Trump had tried to fire Cook, a nominee of former President Joe Biden, but the Supreme Court blocked his first attempt. Separately, Treasury Secretary Scott Bessent hired Judy Shelton, whose controversial economic ideas led the Senate to block her Fed nomination, as an adviser. Trump's bid to fire Cook could affect Fed Chair Jerome Powell, central bank independence and interest rates.

Why it matters：The move intensifies political pressure on the Fed and raises questions about central bank independence ahead of rate decisions.

Key points

  • The Supreme Court previously blocked Trump's attempt to fire Cook.
  • Trump set up a committee to investigate Cook over mortgage fraud claims.
  • Bessent hired Judy Shelton as a Treasury adviser.

Sources (original reporting)

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