Lisa Cook’s Attorney Challenges Fairness Of White House Probe

Authored by Matthew Vadum via The Epoch Times,

Federal Reserve board member Lisa Cook’s attorney called into question the fairness and objectivity of a White House probe after President Donald Trump announced a new committee to investigate whether Cook made false statements.

In an Oct. 13 letter to White House counsel William Scharf obtained by The Epoch Times, lawyer Abbe Lowell wrote that one proposed member of the committee that will review the allegations against Cook, White House economic policy adviser Kevin Hassett, had previously pressed Cook to go on leave from her office and said Trump had “cause” to fire her.

A year ago, Hassett said Cook’s refusal to step aside was “a partisan stance contrary to the independence of the Fed.” Lowell said this comment suggests that he has prejudged the case.

The White House has proposed a Nov. 5 in-person hearing with Cook.

“A hearing with demonstrably biased members, unspecified additional allegations, and an unclear schedule for the disclosure of any additional evidence – with no explanation for why it was not previously produced – is not a process that respects the appearance or history of independence” of the Fed, Lowell wrote.

These are some of the issues that would have to be addressed before a hearing could take place, he said.

The Oct. 13 letter from Lowell comes days after Trump unveiled the new committee to investigate whether Cook made false statements.

The committee will probe allegations that Cook provided false information in connection with at least one mortgage instrument, Trump said in a presidential memorandum establishing the panel.

Trump later told reporters he would fire Cook if the committee were to recommend it. Cook’s attorneys have said a fair hearing would demonstrate that the president has no legal basis for firing her.

Lowell said Cook will not be able to appear at the November hearing because she will be in Europe attending financial and monetary policy meetings. The earliest she is available is after the Fed’s policy meeting set for Dec. 8 and Dec. 9, he said.

On June 29, the Supreme Court blocked the firing, rejecting Trump’s arguments that he could avoid judicial review. The 5-4 decision said Cook was “entitled to notice and some opportunity to respond before her termination.”

The ruling outlined a path for possibly removing Cook if she were given a chance to review the evidence and afforded an opportunity to refute it, which appears to be the path the White House is pursuing.

Trump said he followed the provisions of the Federal Reserve Act, which he said permits presidents to remove board members “for cause.”

White House spokesperson Matthew Middleton defended the process, saying the Constitution requires the president to ensure that laws are followed and that the conduct of Fed governors “is above reproach.”

“The President is going beyond what the Supreme Court required by offering Lisa Cook an in-person hearing that will be conducted in a fair and open process,” he told The Epoch Times.

A White House official said the committee will consist of a senior economist and expert on the Federal Reserve, an employment law expert, and an expert in government ethics. Cook’s hearing will be on the record, and she will be allowed to be represented by an attorney. She will be given the evidence in advance and will have an opportunity to present her own written evidence, as well as written witness statements, the official said.

President Joe Biden appointed Cook as one of the Federal Reserve’s board members in 2022 and reappointed her in 2023. Both times, Cook was confirmed by the U.S. Senate.

Zachary Stieber and Sam Dorman contributed to this report.