White House sets December hearing in effort to remove Fed Governor Cook

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White House hearing on Fed Cook

Highlights

The White House schedules a hearing for December 14 to consider removing Fed Governor Cook, following over a year of attempts by Trump.
The Supreme Court's June ruling affirms a president cannot fire a Fed governor at will but allows removal if due process is observed, creating an unprecedented test of authority.
Timing of the hearing, set near the Fed's December 8-9 policy meeting, intensifies political and institutional pressure on the central bank during Trump's second term.

Hearing schedule and legal backdrop

As reported by Reuters, citing The New York Times, the White House is scheduling the hearing for December 14, citing an unnamed White House official. The proceeding marks a new step in Trump's effort to oust Cook, who denies wrongdoing, after more than a year of attempts to remove her from office.

Cook's lawyer did not respond to a request for comment on Wednesday. But her attorney, Abbe Lowell, previously questions the fairness of the hearing and seeks more information from the White House about the process before agreeing to a date.

The Supreme Court rules in June that Trump cannot fire a Fed governor "at will," though it leaves open the possibility that he may do so if she is given a chance to defend herself. No president has ever removed a U.S. central banker, making the case an unprecedented test of White House authority over the Fed.

Timing and implications for the Federal Reserve

Kevin Hassett, Trump's top economic aide, tells Bloomberg TV last week that Cook's lawyers have agreed to a date in December for what he describes as a fair hearing. Hassett sits on a three-person committee that Trump forms to conduct the hearing and recommend whether Cook should be fired.

Lowell tells the White House last month that Cook would not be available for the initially announced November 5 hearing date and would be unable to attend until after the Fed's December 8 to 9 policy-setting meeting. That timing places the dispute close to a key central bank gathering, underscoring the political and institutional pressure surrounding the Fed during Trump's second term.

Our earlier article on the Federal Reserve’s internal debate over policy messaging explained how officials clashed over whether the central bank should speak less publicly, and how those communications were actively shaping market expectations ahead of the next rate decision. We noted that mixed signals alongside firmer inflation data kept an October hike outlook finely balanced, while clearer comments from senior policymakers helped reset tightening bets and underscored the sensitivity of markets to Fed guidance.

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