The Supreme Court has ruled that Federal Reserve Governor Lisa Cook will remain in her position until oral arguments in her case are scheduled for January 2026. President Donald Trump had sought to terminate Cook from the Fed’s Board of Governors, but the court’s decision halts his efforts pending further legal proceedings.
Trump cited allegations of mortgage fraud as justification for removing Cook, though she has denied any wrongdoing. The dispute arose after Trump pressured Fed Chair Jerome Powell and other officials to lower interest rates, a request that was repeatedly rebuffed. A federal judge previously ruled Cook’s removal illegal, and a divided appeals court rejected an emergency appeal from the Trump administration.
The Supreme Court’s order deferred Trump’s request to block a federal district court’s injunction against Cook’s dismissal, stating it would consider oral arguments in January 2026. The court also outlined steps for filing legal briefs in the case, including input from external parties.
Cook is set to participate in the remaining two Fed meetings of 2025, including an October interest rate-setting session. Meanwhile, the justices are reviewing a separate but related case involving Trump’s authority to remove officials from other federal agencies.
A White House spokesperson defended Trump’s actions, stating, “President Trump lawfully removed Lisa Cook for cause from the Federal Reserve Board of Governors. We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January.”
Legal experts noted the court’s unusual approach, highlighting its emphasis on preserving Fed independence. The decision reflects a broader judicial distinction between the Fed and other federal agencies, where similar firings have been allowed to proceed during legal challenges.