President Donald Trump has revived his campaign to oust Lisa Cook from the Federal Reserve's board of governors, issuing a memo ordering the formation of a committee on inquiry to investigate allegations that Cook made false statements on one or more mortgage loan applications. The memo is dated Oct. 7, 2026, but only appeared on the White House's website on Friday, and it sets an in-person hearing to consider evidence and allegations on Nov. 5, 2026. In the memorandum, Trump wrote that the committee shall investigate the allegations against Governor Cook and report to him whether there is cause for her removal, and the committee may consult personnel from executive departments and agencies, including the Department of Justice. Cook may submit a written position statement to the committee, which must be received at least three days before the hearing. Trump originally tried to fire Cook in August 2025 without an inquiry or investigation, and Cook has sued the president, saying he lacks the authority to remove a Fed governor and did not provide due process; in July, the Supreme Court allowed Cook to stay on the Fed board while her suit proceeds. The president has been frustrated by the monetary policymakers' refusal to cut interest rates, and the Federal Open Market Committee raised its benchmark rate by 25 basis points to 3.75%-4.00% last month.
Trump's push to oust Fed Governor Cook, driven by frustration over the Fed's refusal to cut rates, raises uncertainty over Fed independence and the future policy-rate path.
The inquiry into Cook's removal injects political uncertainty into Fed policy and rate expectations, an ambiguous driver for the 10Y yield.
