Trump forms panel to probe US Fed governor Lisa Cook

WASHINGTON, United States (AFP)—United States (US) President Donald Trump has set up a committee to probe Federal Reserve Governor Lisa Cook over alleged "false statements" linked to mortgages, renewing his efforts to oust her.

The committee is set to hold an in-person hearing on the matter on November 5, the White House said in a statement published Friday, attracting swift criticism from a key Democratic lawmaker.

Elizabeth Warren, top Democrat on the Senate Banking Committee, charged that Trump "is convening an illegitimate show trial" in an attempt to exert control over the independent US central bank.

The move comes just months after the Supreme Court blocked Trump's attempt to fire Cook, saying he had failed to give her notice and a chance to answer allegations that she faced.

"As President, it is my job to ensure the laws are faithfully executed, including by firing subordinates who cannot be trusted to tell the truth and follow the law," Trump said in the statement, dated October 7.

The notice added that the hearing would take place at the White House and last no longer than four hours.

Cook's lawyers expressed "grave doubts that this 'hearing' is a legitimate one that would conform to the law," noting Trump's repeated statements that he had already decided to fire the central bank official.

"We have engaged with the White House to evaluate whether the process proposed has a possibility of being a genuine one and not simply a box checking exercise," added Cook's lawyers Abbe Lowell and Norm Eisen in a statement.

Nonetheless, they said Cook "welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her."

- Unprecedented attacks -

Members of the committee convened by Trump include his top economic aide Kevin Hassett, the White House statement said.

The other two members are the chairman of the Equal Employment Opportunity Commission, Andrea Lucas, and acting director of the Office of Government Ethics, Keith Sonderling.

Trump's statement added that Cook "shall appear at the hearing and be examined by the Committee, its representatives, and her legal counsel, if any."

The committee is expected to submit a recommendation on whether there is cause to remove Cook from her position at the Fed.

No president has removed a sitting Fed governor in the central bank's 113-year history.

Cook has rejected the White House's mortgage fraud allegations, saying previously that Trump had no lawful grounds to fire her.

Trump has launched an unprecedented assault on the independence of the Fed in his second presidency, opening a criminal probe against former chairman Jerome Powell and attempting to oust Cook.

But a government watchdog recently cleared Powell of criminal wrongdoing in a costly Fed renovation project, and US Attorney General Todd Blanche said he would not reopen an investigation.