The Supreme Court has ruled in favor of Lisa Cook, a Federal Reserve governor, allowing her to remain in her position for now, putting a temporary halt to the Trump administration’s immediate dismissal efforts.
Court Blocks Trump's Attempt To Remove Fed Governor Cook
The Supreme Court’s decision was announced on Wednesday, according to AP News. The court will review the arguments in January 2026 regarding President Donald Trump‘s attempt to remove Cook from the Fed board. This ruling will be under consideration while Cook’s challenge to her dismissal by Trump is ongoing.
The court's ruling permits Cook to attend the final two Fed meetings of 2025, including the upcoming interest rate-setting session in late October. This marks a rare occasion where Trump did not secure an immediate win from the justices in an emergency appeal.
Trump had attempted to remove Cook prior to the September meeting of the Fed's interest rate-setting committee. However, a judge deemed the firing unlawful, and a split appeals court turned down the Trump administration's emergency appeal.
Cook’s Refusal To Resign, Higher Inflation Risk
This ruling comes after a series of events that have put Cook’s position in the spotlight. In September, it was revealed that Cook had described her Atlanta condominium as a "vacation home" on a May 2021 preliminary loan estimate and again on a December 2021 government background check, raising questions about allegations of mortgage misrepresentation.
Cook, appointed to the Federal Reserve board by President Joe Biden, has stated that she will not resign and will not be “bullied” by Trump. Her lawyers have applauded the court’s decision, stating that it “rightly allows Governor Cook to continue in her role on the Federal Reserve Board.”
Following this revelation, President Trump sought an emergency order from the Supreme Court to remove Cook from the Federal Reserve's board of governors.
This move was seen as a potential attempt by Trump to take over the Federal Reserve, which some critics believe could result in higher inflation and higher interest rates.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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