President Donald Trump has opened an effort to remove Federal Reserve Governor Lisa Cook while arranging Russian diesel supplies and easing sanctions on fuel shipments. The moves put White House authority over an independent central bank and enforcement of Russia sanctions at the center of two disputes ahead of the U.S. midterm elections.
The Fed inquiry
Trump established a “committee of inquiry” to investigate allegations that Cook made false statements in mortgage applications. A White House hearing is scheduled for Nov. 5. Trump said Cook “shall” attend to answer questions. The hearing won’t be public, but officials will publish a transcript.
The inquiry follows Trump’s attempt to fire Cook, which he first made in August 2025. He alleged that she declared two different properties her “primary” residence in 2021 mortgage applications. Mortgages on primary homes can often receive lower interest rates or other beneficial terms. Cook has denied wrongdoing and hasn’t faced a criminal charge.
Cook’s attorneys, Abbe Lowell and Norman Eisen, said they were evaluating whether the proposed hearing could be genuine. “Governor Cook welcomes the opportunity to present the facts so she can clear her name and demonstrate there is no legal basis to fire her,” they said. They also said she made an “inadvertent error” and referred to one property as a vacation home in other documents.
The Supreme Court ruled in June that Cook could keep her job after Trump sought to fire her the previous year. A footnote said nothing prevented Trump from “trying again” if she received proper notice and a chance to respond. The court said a for-cause firing required an alleged offense that was serious and related to the official’s job.
The committee will include Kevin Hassett, the president’s top economic adviser; Keith Sonderling, the acting director of the Office of Government Ethics; and Andrea Lucas, chair of the Equal Employment Opportunity Commission. Trump appointed all three to the positions described in the article.
Trump’s effort marks the first time in the Federal Reserve’s 113-year history that a president has sought to remove a Fed governor. Former President Joe Biden appointed Cook, the first Black woman on the board. The Federal Reserve declined to comment on Trump’s announcement.
Rates and institutional limits
Trump has repeatedly called for the central bank to cut its key interest rate, but the Fed raised it last month. The Sept. 16 vote was unanimous among its 12 voting members, including Cook, and followed comments by Chairman Kevin Warsh in August that signaled higher rates were likely.
Scott Alvarez, formerly the chief counsel for the Fed, said Trump’s commission went beyond the process the Supreme Court said was needed. Jaret Seiberg, managing director of TD Cowen’s Washington Research Group, wrote that he saw no reason for the White House to begin the process unless it was trying to create a way to justify removing Cook.
Russian fuel and sanctions
Trump separately said Russia would supply more than 300,000 tons of diesel immediately, followed by 500,000 tons in November, 1 million tons “immediately thereafter” and another 3 million tons “within a short period of time.” He called lower prices for Americans his “Greatest Priority.” The White House didn’t immediately answer questions about who would pay, when the diesel would become available or whether supplies expected next month would arrive before Election Day on Nov. 3.
The announcement came after Trump signed a Russia sanctions law last month intended to curb Russian energy revenues. The law directs the administration to target top importers of Russian oil and gas. Shortly after Trump’s announcement, the Treasury Department issued a temporary license allowing Russian diesel to reach the global market. Under the license, U.S. sanctions won’t apply until April 2027 to Russian diesel loaded onto tankers as of Friday.
Ukrainian President Volodymyr Zelenskyy called the deal “a weak decision, unfortunately, a weak decision by strong partners.” He said the announcement came while Trump’s envoy Steve Witkoff and son-in-law Jared Kushner were meeting Ukrainian officials in Miami to discuss a proposal to end the war. Zelenskyy said, “I believe our team is simply being used as a smokescreen.”
The U.S. had not imported Russian oil or gas since 2022, when the Biden administration banned them after Moscow invaded Ukraine. Russian Deputy Prime Minister Alexander Novak said Russia was “immediately starting to lift restrictions on diesel exports ahead of schedule” and that supplies to the U.S. could begin in October. The effect on oil prices remained unclear. AAA put the U.S. national average for diesel at $6.28 a gallon, after it reached a record $6.52 on Sept. 22.