The U.S. Supreme Court ruled Wednesday that Federal Reserve Governor Lisa Cook will be allowed to continue serving on the central bank’s board at least until 2026, while justices weigh the legality of her removal by former President Donald Trump. The court scheduled oral arguments for January 2026, with a decision expected before the end of June next year.
In its brief order, the court did not explain the reasoning behind its decision, but no justices dissented—an unusual move given the court’s frequent alignment with Trump in past legal battles.
The dispute stems from Trump’s decision in August to dismiss Cook, alleging mortgage fraud, a charge she has firmly rejected. Cook challenged the dismissal, stating that the decision violated her constitutional protections as an employee at the independent federal agency while arguing that the president lacked authority to remove her. Under the Federal Reserve Act, a governor can only be removed “for cause,” and not at the president’s discretion – and no president has attempted such a removal in the 112-year history of the central bank.
Last month, an appeals court upheld a preliminary injunction requiring the Fed to let Cook continue serving in her role as a governor of the Federal Reserve System as her lawsuit moves through the courts. Trump asked the Supreme Court to allow him to remove Cook, but the nation’s highest court denied the request.
Cook’s attorneys, Abbe Lowell and Norm Eisen, said in a statement that the order on Wednesday “rightly allows Governor Cook to continue in her role on the Federal Reserve Board, and we look forward to further proceedings consistent with the Court’s order.”
White House spokesperson Kush Desai said in response to the Supreme Court’s move that “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.”
Editorial credit: Photo Agency / Shutterstock.com
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