The Supreme Court has temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, rejecting his emergency request and agreeing to hear oral arguments in January, per USA Today.
Trump had asked the Supreme Court to override a lower court ruling that stopped him from firing Cook, who was appointed by former President Joe Biden in 2022 and is the first Black woman to serve on the Fed board. The president claimed Cook made false statements on mortgage applications prior to her appointment, allegations that the Fed governor denies.
Cook’s attorneys argue that Trump is peddling false mortgage fraud allegations to remove her from the Fed board for political reasons.
“The President purported to remove Governor Cook only after repeatedly criticizing her and her colleagues for failing to make monetary-policy choices that would prioritize short-term growth over long-term stability,” Cook’s legal team told the Supreme Court.
The law allows Fed governors to be removed only “for cause,” but doesn’t define what qualifies. Trump’s legal team argues any ethical issue meets that threshold. Cook’s attorneys say she must be formally notified of the grounds and given a chance to respond through a court-reviewable process.
Congress created the Federal Reserve in 1913 to shield monetary policy from political pressure. The seven-member board sets interest rates that influence the pace of economic growth. Cooks’ case has raised broader concerns about presidential power over independent agencies. Trump has repeatedly criticized Fed leadership, including Chair Jerome Powell, for not lowering rates fast enough during his presidency.
Cook’s legal team warned that removing her could send “shock waves in the financial markets that could not easily be undone.”
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The post Supreme Court Blocks Trump From Firing Fed Governor Lisa Cook — For Now appeared first on Atlanta Daily World.