The U.S. Supreme Court on Wednesday barred President Donald Trump from immediately removing Federal Reserve Governor Lisa Cook, in a move that underscores tensions between the White House and the independent central bank.
In its order, the court deferred Trump’s request “pending oral argument in January 2026,” ensuring Cook will remain in her post until the case is heard.
Trump had sought to oust Cook over allegations that she falsified mortgage statements. Cook, who became the first Black woman to serve on the Fed’s seven-member governing board, filed a lawsuit challenging the attempt, arguing she was denied a fair chance to contest the claims.
As a permanent member of the Fed’s rate-setting committee, Cook holds a key role in shaping U.S. monetary policy and is scheduled to serve until 2038.
The court’s decision represents a rare instance of pushback by the conservative-majority bench, which has often been deferential to Trump’s administration.
Trump has repeatedly clashed with the Fed over its decision to keep interest rates elevated in the fight against persistent inflation. His attempt to fire Cook has rattled investors and sparked criticism from nearly 600 economists, who signed an open letter defending both Cook and central bank independence.
Asked for comment, the Federal Reserve referred to an earlier statement saying it would “abide by any court decision.”
What you should know
Lisa Cook is a trailblazing economist and the first Black woman to serve as a Federal Reserve governor. Appointed for a 14-year term ending in 2038, she plays a central role in U.S. monetary policy.
Trump’s attempt to remove her has raised deep concerns about political interference in the Fed, an institution historically shielded from partisan influence to maintain economic stability.
