In a rare rebuke to presidential authority, the U.S. Supreme Court on Wednesday allowed Federal Reserve governor Lisa Cook to remain on the central bank’s board until 2026, despite President Donald Trump’s efforts to remove her.
The justices, without noted dissent, declined Trump’s request to immediately enforce Cook’s dismissal, choosing instead to hear arguments on the case in January. The move underscores the unprecedented nature of the dispute: in the 112-year history of the Federal Reserve, no president has ever attempted to remove a sitting governor.
Trump sought Cook’s ouster in August, citing mortgage fraud allegations — charges she has firmly denied. Cook sued in response, arguing her removal violated statutory protections that insulate Fed governors from political interference.
Last month, a federal appeals court upheld an injunction allowing Cook to remain on the job as litigation unfolds. By refusing to lift that order, the Supreme Court has, for now, sided with Cook — a departure from its past willingness to defer to Trump’s removal power in cases involving independent agencies.
The legal battle not only tests the limits of presidential authority but also the degree of independence afforded to one of the nation’s most influential financial institutions.
