The U.S. Supreme Court has temporarily shielded Federal Reserve Governor Lisa Cook from removal, turning aside for now the Trump administration’s demand that she be ousted from the central bank.
In an unsigned order issued Wednesday, the justices declined to grant Trump’s emergency request to immediately end Cook’s tenure. Instead, the high court will hear arguments in January on whether the president has the authority to fire her and whether judges can block such dismissals.
The decision allows Cook to stay on the Fed board through the end of the year, including two more policy meetings. Her continued presence marks a notable setback for Trump, who has generally fared well in emergency appeals before the court.
Trump had attempted to remove Cook ahead of the Fed’s September session, but a district judge ruled the move illegal, saying governors can only be dismissed “for cause” linked to misconduct while in office. A divided appeals court upheld that decision, prompting the administration to take the case to the Supreme Court.
“President Trump lawfully removed Lisa Cook for cause from the Federal Reserve Board of Governors. We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January,” White House spokesman Kush Desai said.
The administration accuses Cook of mortgage fraud, citing documents in which she listed both a Michigan residence and a Georgia condo as “primary residences” in 2021, before joining the Fed. Officials say that dual claims reduced her borrowing costs. Solicitor General D. John Sauer argued in filings that “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 about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations.”
Cook has denied wrongdoing and has not been charged with any crime. Documents first obtained by the Associated Press show she had described the Atlanta condo as a “vacation home” in one loan document and as a “2nd home” in a separate security clearance form, both appearing to contradict the fraud claim.
Cook, appointed by President Joe Biden in 2022, has insisted she will not step aside. “I will not be bullied,” she said, with her lawyer Abbe Lowell adding that she “will continue to carry out her sworn duties as a Senate-confirmed Board Governor.”
The broader legal battle goes beyond Cook’s position. In December, the justices will weigh Trump’s removal of officials at other independent federal agencies, a case that could redefine the limits of presidential power over boards designed to operate outside daily politics.
Lev Menand, a Columbia Law School professor, noted the distinction the court appears to be making in Cook’s case. “The court seems to be steering a different course here. It has the effect of freezing the status quo that is in favor of Fed independence,” he said.
Meanwhile, the Fed board has gained a new member, Stephen Miran, confirmed by Senate Republicans to fill a vacant seat. Both Miran and Cook participated in last month’s policy meeting, with Miran casting the lone dissent in favor of a larger rate cut.
In the interim, Cook remains on the board, but her future and the independence of the Federal Reserve itself rests on the Supreme Court’s coming decision.
