The Supreme Court has temporarily halted former President Trump's attempt to immediately remove Federal Reserve Governor Lisa Cook, allowing her to remain on the board and participate in upcoming meetings. The court will hear full arguments in January on the legality of Trump's unprecedented effort to oust a sitting Fed governor.
In a significant, albeit temporary, setback for the Trump administration, the Supreme Court has allowed Federal Reserve Governor Lisa Cook to retain her position, declining an immediate order for her removal. The high court announced it will hear arguments in January regarding former President Donald Trump's unprecedented effort to force Cook off the Fed board. This ruling ensures Cook can participate in the remaining two Fed meetings of 2025, including the critical October interest rate-setting committee session. This marks a rare instance of Trump not achieving immediate success in an emergency appeal before the Supreme Court. The White House's campaign to unseat Cook is historic, as no president has fired a sitting Fed governor in the central bank's 112-year history, an institution designed for independence from daily political pressures. Trump alleges Cook committed mortgage fraud prior to her 2022 appointment to the Fed, claims Cook denies, citing documents that contradict the administration's narrative. A lower court previously ruled Trump's firing illegal, citing that Fed governors can only be dismissed "for cause" related to misconduct while in office and that Cook's due process rights were violated. An appeals court subsequently rejected the administration's emergency appeal. Legal experts suggest the Supreme Court's decision signals a distinct view of the Fed's independence, "freezing the status quo" in favor of Cook. Cook, appointed by President Joe Biden, has publicly stated her refusal to be "bullied" by Trump's actions.
