Lawyers for Federal Reserve's Lisa Cook say White House hearing set up by Trump is 'biased'

Federal Reserve Governor Lisa Cook's lawyers have accused the White House of setting up a biased committee to investigate an accusation against her, with the hearing potentially taking place as early as December 8-9. The committee, which includes three Trump appointees, was announced last week and is seen as an effort to meet the Supreme Court's conditions for Trump to fire Cook. Cook was appointed by President Joe Biden and is the first Black woman on the Fed's board.

Lawyer Abbe Lowell stated in a letter that the committee is "demonstrably biased" and that Cook would not be able to participate in the hearing on November 5 due to her official duties in Europe. The earliest possible appearance by Cook before the committee would be after the Fed's policy meeting on December 8-9. The accusation against Cook, which Trump made in 2021, claims she committed mortgage fraud, a claim she has denied.

No criminal charges have been filed. Trump's efforts to fire Cook are part of a broader trend of the Trump administration threatening the Fed's independence, a reflection of the central bank's traditional independence from politics. The Justice Department had previously sought to investigate then-Chair Jerome Powell over brief testimony he had given about an extensive building renovation, but the case was later dropped.

The Supreme Court had ruled earlier this year that Cook could remain in her position while litigation continued, and suggested that Trump could try again to fire her if the administration provided adequate notice and an opportunity to respond. The committee of inquiry, which will ultimately recommend whether there is cause to fire Cook, includes Kevin Hassett, a top economic adviser to Trump, who has already stated that the president has "cause" to fire Cook. The other two members, Labor Secretary Keith Sonderling and chair of the Equal Employment Opportunity Commission Andrea Rich, are also Trump appointees.

Lowell expressed concerns regarding the objectivity and fitness of the committee for its assigned purpose, stating that a hearing with biased members, unspecified additional allegations, and an unclear schedule for the disclosure of any additional evidence is not a process that respects the appearance or history of independence. The White House memo announcing the committee of inquiry stated that it will ultimately recommend whether there is cause to fire Cook, but the process has been criticized for its lack of transparency and objectivity. ARTICLE: The White House's decision to set up a committee to investigate an accusation against Federal Reserve Governor Lisa Cook has been met with criticism from Cook's lawyers, who claim the committee is "demonstrably biased."

The committee, which includes three Trump appointees, was announced last week and is seen as an effort to meet the Supreme Court's conditions for Trump to fire Cook. The committee's composition has raised concerns about its objectivity, with Kevin Hassett, a top economic adviser to Trump, having already stated that the president has "cause" to fire Cook. Hassett's statement has been criticized by Cook's lawyers, who argue that the committee's members are not impartial.

The accusation against Cook, which Trump made in 2021, claims she committed mortgage fraud, a claim she has denied. No criminal charges have been filed. The Justice Department had previously sought to investigate then-Chair Jerome Powell over brief testimony he had given about an extensive building renovation, but the case was later dropped.

Cook was appointed by President Joe Biden and is the first Black woman on the Fed's board. Her appointment has been seen as a significant milestone in the Fed's efforts to increase diversity and representation. The committee of inquiry will ultimately recommend whether there is cause to fire Cook, but the process has been criticized for its lack of transparency and objectivity. Cook's lawyers have expressed concerns that the committee's members are not fit for the purpose of the inquiry.