Lisa Cook Committee Sets November 5 Hearing on Fed Removal

The Lisa Cook committee is President Donald Trump's second attempt to remove a sitting Federal Reserve governor, this time through a formal process. The White House announced on Friday, October 9, 2026, that Trump had set up a "committee of inquiry" to investigate allegations that Cook made false statements related to "one or more mortgage instruments," CNBC reported.

What happened

The panel has three members, all Trump appointees: Kevin Hassett, director of the National Economic Council; Keith Sonderling, the Labor secretary and acting head of the Office of Government Ethics; and Andrea Lucas, chair of the Equal Employment Opportunity Commission. The presidential memo creating it is dated Wednesday and addressed to Attorney General Todd Blanche. No outside or independent arbiters are mentioned.

According to the memo, Cook is due to attend an in-person hearing at the White House on November 5, two days after the midterm elections. She can bring a lawyer and will have until November 10 to follow up, CNBC explained. The committee will then recommend to the president whether there is cause to fire her. The final decision rests with Trump, and there is no deadline for it. The Guardian reported that the hearing will be closed to the public but transcribed and published.

Cook's lawyers, Abbe Lowell and Norm Eisen, said they "have grave doubts that this 'hearing' is a legitimate one that would conform to the law," while adding that the governor "welcomes the opportunity to present the facts so she can clear her name." Cook has denied any wrongdoing.

Why it matters

The Lisa Cook committee is designed to fix the flaw that sank Trump's first attempt. The Supreme Court, in a June ruling, kept Cook in her seat because she had not been given proper due process, while leaving room for another attempt. Under the Federal Reserve Act, a governor can be removed only "for cause." Chief Justice John Roberts' opinion cited President William Howard Taft's 1912 committee of inquiry as a precedent, but did not require one, noting that the process could even take place entirely in writing.

The Lisa Cook committee also has a historical model. Taft's 1912 panel considered the removal of two members of the Board of General Appraisers, a precursor of today's Court of International Trade, and ultimately recommended that they be removed, CNBC said. Roberts wrote that a finding of cause depends "at least in part, on the seriousness of the alleged misconduct, and the extent of any nexus that may exist to the Governor's professional duties."

Independence is the central objection. CNBC pointed out that the panel is made up of executive branch officials who report to the president, not impartial judges. Sen. Elizabeth Warren accused Trump of "convening an illegitimate show trial." The Guardian noted that Cook was appointed by Joe Biden in 2022 to a 14-year term, becoming the Fed's first Black governor.

Markets care because the Fed's board is already at the centre of the rate debate. CNBC said Cook is expected to take part in the Fed's next rate vote on October 28. Policymakers have been weighing further tightening, as our reports on Waller's case for more hikes and the latest Fed minutes showed. Removing a governor would give the White House another seat to fill.

What's next

After November 10, the committee reports to Trump. If he fires Cook, CNBC said the case would likely return to the Supreme Court, which has said it can review a president's finding of cause, a process that could take months. Open questions about the Lisa Cook committee include whether Cook's testimony could be used in a later criminal case, since the order lets Justice Department officials question her without saying whether her answers would be protected.

The call

On Polymarket's "Lisa Cook out as Fed Governor by December 31?" market, the No side traded at 94.9% when we checked at 05:29 UTC on 2026-10-11, making it the clear favourite. The market is thin, with about $3,993 in volume, so its price can move sharply on small trades. It resolves Yes only if Cook formally ceases to be a Fed governor by 11:59 PM ET on December 31; announcements of a future departure, suspensions and leaves do not count.

Our call follows the market favourite: No, Lisa Cook will not be formally out of the Fed board by December 31, 2026, given the hearing timetable and the likelihood of another court fight. We will score it on January 1. This is a dated market call for the Called It record, not investment advice.