U.S. Supreme Court denies Trump's immediate firing of Fed Governor Cook
The US Supreme Court has prevented US President Donald Trump from immediately firing Lisa Cook, a member of the Board of Governors of the Federal Reserve System (US). This follows from the published document of the court.
The Supreme Court has scheduled a hearing on Trump's lawsuit, which is trying to get Cook fired through the court, for January 2026. Consequently, Cook can keep his position and continue to serve at least until the court's decision, which is expected after those hearings, Bloomberg noted. The Fed is expected to hold an interest rate meeting at the end of October.
That's a setback for Trump as he tries to increase his control over the Fed, the agency said. That said, the Supreme Court has largely sided with Trump this year in other lawsuits challenging his decisions to fire officials at various federal agencies, Bloomberg noted. Cook's case is special, however, because the Fed's independence from the White House has historically been considered critical to the regulator's role in maintaining economic stability, Bloomberg explained. By scheduling the hearing for January, the Supreme Court has bought itself more time to hear the case, The Wall Street Journal said.
Context
Trump announced the decision to fire Cook in late August. The U.S. president was referring to accusations against Cook of alleged mortgage fraud. Cook has denied the allegations. The White House wanted to get Cook expelled before the Fed's September meeting, but lower courts blocked her immediate dismissal, the WSJ wrote. Cook's lawyers warned in documents filed with the Supreme Court that upholding Trump's decision carries risks of "chaos and disruption to financial markets," the newspaper added.
The standoff between Trump and Cook is unprecedented in the US: since the Fed's founding in 1913, no member of its Board of Governors has ever been attempted to be fired by the president, although the head of state has the ability to do so, The Wall Street Journal noted.
This article was AI-translated and verified by a human editor
