President Trump is setting up a special committee to investigate whether Fed Governor Lisa Cook lied about a mortgage application.
The decision is the latest twist in Mr. Trump’s effort to reshape the Fed’s board to his liking, as he bemoans the central bank’s reluctance to lower interest rates.
Mr. Trump’s memorandum says the committee should consult with the Department of Justice and other agencies in exploring whether Ms. Cook told the truth about her properties in formal loan documents.
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The memo calls for a hearing about the matter at the White House on Nov. 5. The president expects Ms. Cook to appear.
“As president, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law,” the White House memo says.
The memo is dated Oct. 7 but gained notice on Friday, as social media channels associated with Mr. Trump broadcast the development.
Mr. Trump has been trying to fire Ms. Cook for months over allegations that she listed properties in Michigan and Georgia as “primary residences” in 2021, before she joined the Fed as an appointment from President Joseph R. Biden.
Courts blocked Mr. Trump’s attempts to fire Ms. Cook until there is a fuller inquiry, and the governor has a chance to defend herself.
Ms. Cook’s lawyers said the issue stemmed from errant paperwork, not an attempt at fraud, and that others made the same mistake.
“An inadvertent error is not fraud, as the president and a third of his cabinet should know because they reportedly did the same thing,” attorney Abbe Lowell said in August. “These attacks on Governor Cook are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”
Mr. Trump is livid that Fed governors have not slashed interest rates, and in some cases raised rates to tame price inflation.
The president’s handpicked chairman, Kevin Warsh, says inflation is running above the Fed’s 2% target. He’s vowed to restore price stability.
Mr. Trump is supporting Mr. Warsh but says he is hamstrung by Fed governors who were appointed by Democrats, such as Ms. Cook.
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