Lawyer for Fed's Lisa Cook asked White House to delay Nov. 5 hearing, alleging bias

Washington: The lawyer for Federal Reserve Governor Lisa Cook has criticized the impartiality of a White House investigation into accusations of mortgage fraud against her, in response to President Donald Trump's latest effort to remove her from her position. Trump has been attempting to dismiss Cook for over a year, as he seeks to gain more influence over the central bank, which he claims is resisting rate cuts for political motives.

Cook denies any wrongdoing and has filed a lawsuit to retain her job. Earlier this month, Trump announced a new inquiry into Cook and the formation of a three-person panel to hold a hearing. If the panel backs the removal, Trump has indicated he will proceed. Cook's legal representatives argue that a fair hearing would demonstrate no legal basis for her dismissal.

In Tuesday's letter, Cook's attorney, Abbe Lowell, pointed out that one of the proposed committee members, White House economic policy adviser Kevin Hassett, had previously urged Cook to take leave from her post and suggested Trump had cause to fire her. Lowell wrote that a hearing with biased members, additional allegations, and an unclear schedule for disclosing any further evidence, without any justification for its delay, is not a process that maintains the appearance or historical independence of the institution.

Lowell added that Cook would be unable to attend a hearing on November 5, the date announced by the White House, as she will be participating in financial and monetary policy meetings in Europe. The earliest she could attend any hearing would be after the Federal Reserve's policy meeting scheduled for December 8-9. A Supreme Court decision earlier this year barred Trump from arbitrarily dismissing a Fed governor, emphasizing the need for the institution to retain political independence, both in fact and appearance, to carry out its duties.

However, the ruling also outlined a route for potential removal if a Fed official was granted a fair opportunity to review the evidence of the allegations and counter them. The White House seems to be pursuing that course. The Federal Reserve increased its policy rate in September and is anticipated to do so once more during its final meeting of the year.