Donald Trump and Lisa Cook (Images/Agencies)
The US Supreme Court on Wednesday barred President Donald Trump from immediately removing Federal Reserve Governor Lisa Cook, ensuring she will remain in her post until the court hears arguments on the case in January 2026.In a brief order, the court said they had “deferred” the administration’s request, leaving in place lower-court rulings that blocked Cook’s dismissal, according to news agency AP. The court will consider early next year whether Trump can legally fire Cook, who was appointed to the Fed board in 2022 by then-President Joe Biden.Cook, the first Black woman to serve as a Fed governor, has denied wrongdoing and vowed not to be “bullied” out of her post. Her lawyer, Abbe Lowell, said she “will continue to carry out her sworn duties as a Senate-confirmed Board Governor.”
Trump’s move against Cook
Trump announced Cook’s firing in August through a letter posted on his Truth Social account, accusing her of mortgage fraud. He claimed she had improperly declared two homes as her “primary residence” in 2021 to secure more favorable loan terms. “Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied,” Solicitor General D John Sauer argued in a Supreme Court filing. Cook has denied the allegations and documents cited in court filings appeared to undercut the fraud claims. She has not been charged with any crime. A US district judge ruled that Trump’s action violated the legal requirement that Fed governors can only be dismissed “for cause,” and a federal appeals court upheld that decision by a 2-1 vote.
Implications for the Fed
The case marks a rare challenge to the independence of the US central bank. No president has ever fired a sitting Fed governor in the institution’s 112-year history. Trump has repeatedly criticized the Fed for not cutting interest rates as aggressively as he wanted. With Cook’s contested removal and a separate vacancy created by Governor Adriana Kugler’s resignation, Trump now has the chance to fill two board seats.Meanwhile, the Supreme Court is also set to hear arguments in December in a related case over whether presidents have sweeping authority to fire officials from independent federal agencies. That ruling could directly impact Cook’s fate.Cook’s next opportunity to vote on monetary policy will come during the Fed’s meeting scheduled for October 28–29.
