Supreme Court Rules on Trump Bid to Remove Lisa Cook From the Fed

Lisa Cook will keep her post on the Federal Reserve Board of Governors for now at least, as the Supreme Court denied an emergency appeal by the Trump administration.

The high court will hear arguments in January 2026 in the case of Trump v. Cook, and decide the case later that year. President Donald Trump recently fired Cook, who is challenging the firing.

Members of the board are appointed by the president and confirmed by the Senate, but Trump’s ouster of Cook marked the first time a president removed a board member since the Federal Reserve was created in 1913.

The high court did not explain the reason for the ruling, ABC News reported. A decision without explanation has not been unusual for cases on the emergency docket. Emergency docket cases happen when one party contends there is a pressing need to address the matter.

In this case, the Trump administration argued for reversing a lower court’s temporary injunction on firing Cook.

Critics of the firing say it jeopardizes the independence of the Fed. Supporters of the move have countered that government boards and commissions should be more accountable to elected officials. 

The administration had asked the high court to make an emergency ruling to stay a lower court’s injunction. The ruling allows the Trump decision to stand until the case is fully appealed. 

After Trump attempted to remove Cook from the board, she sued to challenge the removal. 

Trump justified the removal based on alleged misstatements by Cook on mortgage documents. Cook has denied any wrongdoing regarding her mortgage. 

Cook contested the firing, saying a board member can only be removed “for cause” under the Federal Reserve Act, which includes due process for the employee. 

The administration argued the president has broad discretion to remove a member of the Federal Reserve Board of Governors. The administration contends the allegations on mortgage statements meet the standard.

In September, U.S. District Judge Jia Cobb for the District of Columbia issued a preliminary injunction restoring Cook to the board, noting the mortgage allegations predated her time on the board, and thus, failed to meet the “for cause” standard. The district judge determined that Trump also violated Cook’s due process rights by not giving her a chance to be heard before her firing. Cobb was appointed by President Joe Biden.

The D.C. Circuit Court of Appeals denied the administration’s emergency motion in September in a 2-1 ruling. So, the Trump administration requested the Supreme Court stay the preliminary injunction. The Justice Department said lower courts interfered with the president’s removal authority. 

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