The Supreme Court has ruled that Federal Reserve Governor Lisa Cook will remain in her position until oral arguments in her case are scheduled for January 2026. The decision prevents President Donald Trump from immediately removing Cook from the Fed’s Board of Governors, marking a setback for his efforts to terminate her.
Trump had previously sought to fire Cook, citing alleged mortgage fraud related to her applications for homes in Michigan and Georgia. However, he has not provided evidence of legal wrongdoing, as Cook has denied any misconduct and faces no formal charges. The president’s initial attempt to remove her in August followed months of pressure on Fed Chair Jerome Powell and other officials to lower interest rates.
The Supreme Court’s order deferred Trump’s request to suspend a federal district court’s injunction against Cook’s removal, stating the case would proceed with oral arguments in 2026. The court also outlined plans for legal briefs from interested parties, though no specific date was set for the hearing. Cook is expected to participate in the Fed’s remaining meetings in 2025, including an upcoming interest rate-setting session.
Separately, the justices are reviewing a related case involving Trump’s authority to dismiss officials from independent federal agencies. While other firings have been allowed to take effect during legal challenges, the court’s handling of Cook’s case underscores its unique stance on Fed independence. Legal experts noted the decision preserves the central bank’s autonomy, contrasting with rulings in similar cases involving other agencies.
A White House spokesperson defended Trump’s action, stating he lawfully removed Cook for cause and anticipated a favorable outcome after presenting arguments before the Supreme Court. The case remains pending as the court continues to weigh the balance between presidential authority and institutional independence.
