US Justice Department to investigate Fed’s Lisa Cook, urges her removal

The US Justice Department signalled possible plans to investigate Federal Reserve Governor Lisa Cook, with a top official informing Federal Reserve Chair Jerome Powell of the probe and encouraging him to remove her from the board in a letter sent on Thursday.

Ed Martin, a Justice Department official who has led similar investigations into Senator Adam Schiff of California and New York Attorney General Letitia James, told Federal Reserve Chair Jerome Powell that Cook’s case “requires further examination” in the letter.

“At this time, I encourage you to remove Ms Cook from your Board,” Martin wrote. “Do it today before it is too late! After all, no American thinks it is appropriate that she serve during this time with a cloud hanging over her.”

US President Donald Trump has discussed firing Cook, according to a White House official familiar, but that is not under active consideration. Trump would prefer to see Cook resign or be fired by Powell, said the official, who spoke on condition of anonymity because they were not authorised to speak publicly on the issue.

Powell does not have the legal authority to fire Cook, a Senate-confirmed presidential appointee. Only the president can remove a Fed governor and only for cause.

Cook on Wednesday said she intended to remain at the central bank, after Trump called for her resignation.