Supreme Court Lets Lisa Cook Remain as Fed Gov. Amid Trump Firing Dispute/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Supreme Court ruled that Federal Reserve Governor Lisa Cook can remain in her post for now, rejecting President Trump’s attempt to immediately remove her. The justices will hear arguments in January on the broader legal question of presidential power over Fed officials. Cook, appointed by President Biden, denies allegations of wrongdoing cited by Trump as justification for her firing.
Lisa Cook Supreme Court Case Quick Looks
- Supreme Court declines Trump’s request to fire Lisa Cook immediately
- Cook will remain on Fed Board until at least January arguments
- Issue centers on presidential power to remove independent agency officials
- Trump claims Cook engaged in mortgage fraud, allegations she denies
- NBC News documents contradict fraud claims cited by Trump’s team
- Federal law only allows removal “for cause” of misconduct or neglect
- Court also weighing a related case on firing agency officials at will
- Cook voted for Fed’s first 2025 rate cut in September
- Trump has already appointed Stephen Miran as Fed governor and can name new chair in 2026
Deep Look
Supreme Court Leaves Lisa Cook in Place as Federal Reserve Governor Pending Key Ruling
WASHINGTON — The Supreme Court ruled Wednesday that Lisa Cook will remain a Federal Reserve governor, at least until early next year, while it considers whether President Donald Trump has the authority to remove her from office. The decision deals an immediate setback to Trump’s push to reshape the Fed board with his appointees as he pressures the central bank to adopt his economic agenda.
In a brief unsigned order, the justices announced they would hear arguments in January on Trump’s attempt to fire Cook. A ruling is expected by June 2026.
Trump’s Attempt to Fire Cook Put on Hold
Trump had asked the Court for emergency approval to remove Cook immediately, while litigation continued in lower courts. That request was denied, indicating the justices did not find enough support to grant it at this stage.
Cook, appointed by President Joe Biden in 2022, argued that under the Federal Reserve Act, governors can only be removed “for cause” — typically meaning misconduct or neglect of duty. Trump contends that the law does not restrict his authority to act.
Fraud Allegations Disputed
Trump justified his decision to fire Cook by pointing to allegations of mortgage fraud raised by Bill Pulte, his appointed director of the Federal Housing Finance Agency. Cook has denied all wrongdoing, and bank records obtained by NBC News appear to contradict the claims.
Cook filed a federal lawsuit in August after Trump announced her removal, and lower courts sided with her, blocking the administration from immediately replacing her. That ruling prompted Trump’s emergency appeal to the Supreme Court.
Larger Questions on Presidential Power
The dispute over Cook’s position feeds into a broader legal battle over the president’s power to fire officials at independent federal agencies.
In December, the Supreme Court will hear a related case addressing whether Trump can fire at will members of regulatory boards, which traditionally enjoy a degree of independence from executive control. Another question is whether courts can block firings outright or only award back pay if dismissals are deemed unlawful.
The outcome of that case could directly impact Cook’s fate, shaping the limits of executive power across multiple agencies.
Trump’s Broader Push on the Fed
Since returning to office in January 2025, Trump has sought to assert greater influence over the Federal Reserve, criticizing it for not cutting interest rates quickly enough to stimulate growth.
In September, the Fed announced its first interest rate cut of the year, which Cook supported. Trump has already installed Stephen Miran, a close adviser, as a Fed governor, and will have the chance to name a new Fed chair next year when Jerome Powell’s term ends.
This case represents a pivotal moment in Trump’s broader campaign to reshape independent institutions in line with his policy agenda.
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