The US Supreme Court ruled today to allow Fed member Lisa Cook to continue in her position until oral hearings in January.
The court's decision marks a setback for President Donald Trump, who has repeatedly unsuccessfully appealed to the courts to remove Cook from office.
Trump has cited Cook for “mortgage fraud,” alleging he made false statements on mortgage applications for two homes in Michigan and Georgia, as grounds for impeachment. Cook denies the allegations, and no formal charges have been filed.
Trump's first attempt to remove Cook came in August after he pressured longtime Fed Chair Jerome Powell and other board members to lower interest rates. In September, the Fed cut the policy rate by a quarter-point despite Trump's objections. Cook voted yes, while Trump's new appointee, Stephen Miran, voted for a more aggressive half-point cut.
The Supreme Court ruling rejected Trump's request to allow Cook to be fired immediately, and suspended the process until oral hearings in January 2026. The court also announced that a timetable would be set for interested parties and external stakeholders to submit written comments.
The Trump administration argues that Cook's dismissal constitutes “good cause” under the Federal Reserve Act. The Justice Department, in previous filings, has characterized the lower court's decision restricting Trump's impeachment authority as “improper judicial interference.”
Cook's attorneys, Abbe Lowell and Norm Eisen, welcomed the Supreme Court's decision, saying, “This decision allows Cook to continue in his position. We expect the process to proceed in accordance with the court's rulings.”
White House spokesperson Kush Desai defended Trump's decision as legal and expressed confidence that they would win a “final victory” at the hearing to be held in January.
The Supreme Court's decision allows the Fed to continue operating normally through the end of the year. Cook will continue to vote at the Federal Open Market Committee (FOMC) meetings in October and December.
*This is not investment advice.
