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In a move underscoring judicial checks on executive power, the US Supreme Court on Wednesday barred Donald Trump from instantly ousting Federal Reserve Governor Lisa Cook. The court deferred the request “pending oral argument in January 2026,” ensuring Cook remains on the Fed’s seven‑person board while the case is litigated.VTrump’s attempted removal, grounded in claims about false statements on mortgage documents, is one of several actions critics say have tested central bank independence. Cook has filed a lawsuit challenging her firing, arguing that she was not given a chance to meaningfully contest the allegations against her.
In response to Wednesday's Supreme Court order, a White House spokesperson said that the administration had lawfully removed Cook, and looked forward to ultimate victory after presenting our oral arguments before the Supreme Court in January. Cook currently remains a member of the Fed's governing board, and the bank's powerful interest rate-setting committee. Cook, who is the first Black woman to serve on the independent central bank's governing board, was nominated to her position by former US president Joe Biden and then approved by a vote in the US Senate. She is due to remain at the Fed until 2038. Trump has been a fierce critic of the Fed's decision to keep interest rates elevated as it battles against inflation, which remains stuck stubbornly above its long-term target of two percent.
The US central bank has a dual mandate from Congress to act independently to tackle both inflation and employment by either raising or lowering its key lending rate. At its most recent meeting, the Fed's rate-setting committee -- including Cook -- voted overwhelmingly to cut the bank's key lending rate by a quarter of a percentage point to between 4.00 and 4.25 percent.
The Supreme Court's decision to delay the trial until January marks a rare instance of pushback by the conservative-dominated court, which has been deferential to the current administration. Trump's attempts to fire a member of the independent central bank have unnerved investors, and drawn criticism from close to 600 economists, who recently penned a letter expressing their support for both Cook and central bank autonomy.