The United States Supreme Court on Wednesday barred President Donald Trump from immediately removing Federal Reserve Governor Lisa Cook, in a case that has put fresh scrutiny on the independence of the central bank.
In an order, the justices said the request had been deferred “pending oral argument in January 2026,” ensuring Cook will remain in office at least until the case is heard.
Trump’s Attempt to Oust Cook
Over the summer, Trump moved to dismiss Cook — the first Black woman to serve on the Fed’s powerful seven-member board — accusing her of falsifying statements on mortgage agreements. Cook denied the allegations and sued, arguing she was denied a fair chance to defend herself.
Cook, who holds a permanent seat on the Fed’s rate-setting committee, is due to serve until 2038. Her removal attempt comes as Trump has intensified criticism of the central bank for keeping interest rates elevated while inflation remains above its long-term target of two percent.
Court Pushback and Market Jitters
The Supreme Court’s decision to pause Trump’s move marks a rare moment of resistance by the conservative-majority bench, which has often been deferential to the administration. The attempted dismissal rattled investors and prompted nearly 600 economists to sign a public letter backing Cook and the Fed’s independence.
Asked for comment, a Federal Reserve spokesperson referred AFP to an earlier statement in August in which the central bank pledged to “abide by any court decision.”
