President Donald Trump has officially established a “commission of inquiry” to investigate allegations that Federal Reserve Governor Lisa Cook made false statements regarding “one or more mortgage instruments,” the White House announced Friday.
The extraordinary announcement is the latest development in Trump’s long-running effort to fire Cook, a nominee of former President Joe Biden, from the central bank’s board. Trump, who frequently urges the Fed to lower interest rates, recently said the failure of his hand-picked chairman, Kevin Warsh, to do so was the fault of a “hostile” board.
The committee includes three executive branch officials, including Kevin Hassett, Trump’s top economic adviser and chief defender of the administration’s economic record, according to a presidential memorandum posted on the White House website and shared Friday on social media.
The other two members are Keith Sonderling, acting head of the Office of Government Ethics, and Andrea Lucas, chair of the Equal Employment Opportunity Commission, according to the notice dated Wednesday. No external and independent arbitrator is mentioned.
The Fed and Cook’s lawyer did not immediately respond to CNBC’s requests for comment on Trump’s memorandum.
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