Supreme Court Rules in Favor of Fed Member Lisa Cook
The US Supreme Court made a significant ruling today, allowing Federal Reserve member Lisa Cook to remain in her position until oral hearings take place in January. This decision comes as a setback for President Donald Trump, who has been unsuccessful in his attempts to remove Cook from office.
Allegations of Mortgage Fraud
President Trump has accused Cook of mortgage fraud, claiming that she provided false information on mortgage applications for two properties in Michigan and Georgia. However, Cook has vehemently denied these allegations, and no formal charges have been brought against her.
Trump’s initial efforts to oust Cook began in August when he pressured Federal Reserve Chair Jerome Powell and other board members to lower interest rates. Despite Trump’s objections, the Fed decided to reduce the policy rate by a quarter-point in September. Cook supported this decision, while Trump’s newly appointed board member, Stephen Miran, pushed for a more aggressive half-point cut.
Supreme Court Decision
The Supreme Court’s ruling rejected Trump’s request for Cook’s immediate dismissal and instead postponed the process until oral hearings scheduled for January 2026. The court also announced that a timeline would be established for interested parties and external stakeholders to submit written comments on the matter.
The Trump administration argues that Cook’s removal is justified under the Federal Reserve Act. The Justice Department has criticized the lower court’s decision to limit Trump’s impeachment authority as “improper judicial interference.”
Cook’s legal team, comprised of Abbe Lowell and Norm Eisen, expressed satisfaction with the Supreme Court’s decision, stating, “We anticipate that Cook will continue in her role in accordance with the court’s directives.” On the other hand, White House spokesperson Kush Desai defended Trump’s actions as lawful and expressed confidence in a favorable outcome at the upcoming hearing in January.
Continued Operations
The Supreme Court’s ruling ensures that the Federal Reserve can continue to function normally until the end of the year. Cook will participate in voting at the Federal Open Market Committee (FOMC) meetings scheduled for October and December.
*Please note that this information is not intended as investment advice.