Lisa Cook, a governor at the U.S. Federal Reserve, will retain her position for the time being, despite former President Donald Trump’s efforts to remove her from the board. The U.S. Supreme Court has postponed any action on the Department of Justice’s request to allow the president to terminate Cook until oral arguments are presented in January.
Trump has initiated an unusual campaign to assert control over the Federal Reserve, which has traditionally operated independently. His actions include publicly criticizing the central bank’s decisions, installing a close ally to the board, and attempting to dismiss Cook. This effort has triggered discussions regarding the Fed’s independence, a principle upheld for decades.
In August, Trump sought to “immediately” fire Cook, citing unverified allegations of mortgage fraud from before her appointment in 2022. Cook has denied these allegations and contends that the president lacks authority to remove her. This legal battle escalated when the Supreme Court reviewed Trump’s attempt to dismiss Cook, marking the first occasion a president has sought to fire a Fed official. As a consequence, a lower court’s order blocking the dismissal remains in effect.
Abbe David Lowell and Norm Eisen, representing Cook, expressed optimism over the Supreme Court’s decision, highlighting that it allows Cook to continue serving on the Federal Reserve Board. They await further legal proceedings related to the case. The Department of Justice has not yet commented.
Since its establishment in 1913, the Federal Reserve has been protected from political interference. The Federal Reserve Act permits the president to remove governors only “for cause,” although the term is not explicitly defined, and no prior legal cases have tested this provision. A ruling made by a district judge earlier this month indicated that the allegations against Cook likely do not meet the legal standard required for removal.
Cook, who is the first Black woman to serve as a Federal Reserve governor, filed a lawsuit against Trump after his announcement about her removal. She argues that his claims are insufficient for dismissal and motivated by disagreement over her monetary policy views. Trump has indicated a desire to strengthen his influence over the Fed, signaling intentions to establish a majority on its interest-rate setting committee and advocating for policy changes contrary to past norms. Jerome Powell, the Fed chair, has reinforced the importance of the Fed’s independence and is due for term renewal next year.
Source: https://www.theguardian.com/us-news/2025/oct/01/federal-reserve-supreme-court-lisa-cook