Title: Supreme Court Allows Lisa Cook to Stay as Federal Reserve Governor

Content: WASHINGTON — The Supreme Court has decided to allow Lisa Cook to remain a Federal Reserve governor for the time being. On Wednesday, the court declined to act on the Trump administration's request to remove her from the central bank immediately. In a brief unsigned order, the justices announced they would hear arguments in January regarding President Donald Trump’s attempt to oust Cook from the Fed board.

The court will evaluate whether to block a lower-court ruling that favored Cook while her challenge to her firing continues. This decision marks a rare instance where Trump did not receive a swift ruling in his favor from the Supreme Court in an emergency appeal. Cook is expected to participate in the remaining two Fed meetings in 2025, including the upcoming meeting of the interest rate-setting committee in late October.

In a separate case, the justices are set to hear arguments in December concerning Trump’s authority to fire members of boards overseeing other independent federal agencies. This case will address whether Trump can dismiss these officials at will and whether federal judges can prevent such firings or only order back pay for those wrongfully dismissed.

Trump had aimed to remove Cook before the September meeting of the Fed’s interest rate-setting committee. However, a judge ruled that the firing was illegal, and a divided appeals court rejected the administration's emergency appeal. Following a meeting that resulted in a quarter-point reduction in a key interest rate, the administration sought the Supreme Court's intervention.

The effort to unseat Cook represents an unprecedented attempt to alter the Fed board, which is intended to operate independently from political pressures. Historically, no president has dismissed a sitting Fed governor in the institution's 112-year history.

"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," said White House spokesman Kush Desai.

Legal experts suggest the court may treat the Fed differently from other independent agencies. Lev Menand, a professor at Columbia Law School, noted that the court's order reflects a commitment to maintaining the Fed's independence.

Cook, appointed by Democratic President Joe Biden, has stated she will not resign and will not be "bullied" by Trump. Her attorney, Abbe Lowell, emphasized that Cook will continue to fulfill her duties as a Senate-confirmed Board Governor.

In a related development, Senate Republicans confirmed Stephen Miran, Trump’s nominee for an open position on the Fed board. Both Cook and Miran participated in last month’s meeting, where Miran was the only dissenting vote, advocating for a larger interest rate cut.

Trump has accused Cook of mortgage fraud, alleging she claimed two properties in Michigan and Georgia as "primary residences" in mid-2021, prior to her appointment to the Fed board. Such claims could potentially lead to lower mortgage rates and smaller down payments. Solicitor General D. John Sauer stated in his Supreme Court filing, "Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations."

Cook has denied any wrongdoing and has not faced criminal charges. Documents indicate that she referred to her Atlanta condo as a "vacation home" in a loan estimate from May 2021 and described it as a "2nd home" in a security clearance form, which may counter the administration's fraud claims.

U.S. District Judge Jia Cobb ruled that the administration failed to meet the legal requirement that Fed governors can only be dismissed "for cause," which she defined as misconduct during their tenure. Cook joined the Fed board in 2022. Cobb also determined that Trump’s attempt to fire Cook would have violated her due process rights, preventing her from contesting the dismissal. A federal appeals court panel voted 2-1 to reject the administration's request to proceed with Cook's firing. Trump's legal team has argued that even if the alleged conduct occurred before her tenure, it raises questions about Cook's trustworthiness and her ability to manage interest rates and the economy responsibly.