Supreme Court Halts Immediate Removal of Lisa Cook from Federal Reserve Board, Schedules January Hearing
Supreme Court Halts Immediate Removal of Lisa Cook from Federal Reserve Board, Schedules January Hearing
In a significant decision, the U.S. Supreme Court on Wednesday ruled to allow Federal Reserve Governor Lisa Cook to retain her position on the central bank board until 2026. The high court simultaneously announced it would hear President Donald Trump’s appeal to remove Cook for cause, with oral arguments scheduled for January.
The Court’s brief order did not provide an explanation for its decision, nor were any dissents noted. This move marks a notable departure from previous Supreme Court stances on presidential removal powers concerning independent federal agencies, where justices have often shown deference to the President’s authority, at least on an interim basis.
A White House spokesperson, Kush Desai, expressed confidence in the administration’s position, stating, “We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January.”
The dispute originated in August when President Trump moved to dismiss Cook, citing allegations of mortgage fraud, which Cook has vehemently denied. Cook subsequently filed a lawsuit, arguing that the attempted ouster violated her legal protections as an employee of an independent federal agency.
Federal law permits a president to remove a member of the Fed board “for cause,” a power that has never been exercised in the central bank’s 112-year history. Last month, an appeals court had upheld a preliminary injunction, mandating that Cook continue serving in her role while her lawsuit progressed. President Trump then appealed this injunction to the Supreme Court, which ultimately denied his request for immediate removal.
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