{"id":195315,"date":"2025-10-01T18:32:09","date_gmt":"2025-10-01T18:32:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/195315\/"},"modified":"2025-10-01T18:32:09","modified_gmt":"2025-10-01T18:32:09","slug":"supreme-court-lets-lisa-cook-remain-as-a-federal-reserve-governor-for-now","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/195315\/","title":{"rendered":"Supreme Court lets Lisa Cook remain as a Federal Reserve governor for now"},"content":{"rendered":"

WASHINGTON (AP) \u2014 The Supreme Court<\/a> on Wednesday allowed Lisa Cook<\/a> to remain as a Federal Reserve governor for now, declining to act on the Trump administration\u2019s effort to immediately remove her from the central bank.<\/p>\n

In a brief unsigned order, the high court said it would hear arguments in January over Republican President Donald Trump\u2019s effort to force Cook off the Fed board.<\/p>\n

The court will consider whether to block a lower-court ruling in Cook\u2019s favor while her challenge to her firing by Trump continues.<\/p>\n

The high-court order was a rare instance of Trump not quickly getting everything he wants from the justices in an emergency appeal.<\/p>\n

<\/p>\n

\"President<\/p>\n

President Donald Trump walking off stage after speaking to a gathering of top U.S. military commanders at Marine Corps Base Quantico, Tuesday, Sept. 30, 2025, in Quantico, Va. (AP Photo\/Evan Vucci)<\/p>\n

President Donald Trump walking off stage after speaking to a gathering of top U.S. military commanders at Marine Corps Base Quantico, Tuesday, Sept. 30, 2025, in Quantico, Va. (AP Photo\/Evan Vucci)<\/p>\n

Read More<\/p>\n

Cook will be able to take part in the remaining two Fed meetings in 2025, including the next meeting of its interest rate-setting committee in late October.<\/p>\n

Separately, the justices are hearing arguments in December in a separate but related legal fight<\/a> over Trump\u2019s actions to fire members of the boards that oversee other independent federal agencies. The case concerns whether Trump can fire those officials at will.<\/p>\n

But a second issue in the case could bear directly on Cook\u2019s fate: whether federal judges have the authority to prevent the firings or instead may only order back pay for officials who were wrongly dismissed.<\/p>\n

Trump had sought to oust Cook before the September meeting of the Fed\u2019s interest rate-setting committee. But a judge ruled that the firing was illegal, and a divided appeals court rejected the Trumps administration\u2019s emergency appeal.<\/p>\n

A day after the meeting concluded with a one-quarter of a percentage point reduction<\/a> in a key interest rate, the administration turned to the Supreme Court in a new emergency appeal.<\/p>\n

The White House campaign to unseat Cook marks an unprecedented bid to reshape the Fed board, which was designed to be largely independent from day-to-day politics. No president has fired a sitting Fed governor in the Fed\u2019s 112-year history.<\/p>\n

\u201cPresident 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,\u201d White House spokesman Kush Desai said.<\/p>\n

The court already has suggested<\/a> that it will view the Fed differently from other independent agencies and Wednesday\u2019s order is another demonstration of that distinction, said Lev Menand, a professor at Columbia Law School and author of a book on the Fed.<\/p>\n

The justices have allowed other firings to take effect while legal challenges proceed, including in the case that will be argued in December involving Rebecca Slaughter, whom Trump fired from the Federal Trade Commission.<\/p>\n

\u201cThe court seems to be steering a different course here,\u201d Menand said. \u201cIt has the effect of freezing the status quo that is in favor of Fed independence.\u201d<\/p>\n

Cook, who was appointed to the Fed board by Democratic President Joe Biden, has said she will not leave her job and won\u2019t be \u201cbullied\u201d<\/a> by Trump. Her lawyers said in a statement Wednesday that the court\u2019s decision \u201crightly allows Governor Cook to continue in her role on the Federal Reserve Board, and we look forward to further proceedings consistent with the Court\u2019s order.\u201d <\/p>\n

Separately, Senate Republicans recently confirmed Stephen Miran<\/a>, Trump\u2019s nominee to an open spot on the Fed\u2019s board. Both Cook and Miran took part in last month\u2019s meeting. Miran was the sole dissenting vote, preferring a larger cut.<\/p>\n

Trump has accused Cook of mortgage fraud because she appeared to claim two properties, in Michigan and Georgia, as \u201cprimary residences\u201d in June and July 2021, before she joined the Fed board. Such claims can lead to a lower mortgage rate and smaller down payment than if one of them was declared as a rental property or second home. <\/p>\n

\u201cPut simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself \u2014 and refuses to explain the apparent misrepresentations,\u201d Solicitor General D. John Sauer wrote in his Supreme Court filing.<\/p>\n

Cook has denied any wrongdoing and has not been charged with a crime. According to documents obtained by The Associated Press<\/a>, Cook specified that her Atlanta condo would be a \u201cvacation home,\u201d according to a loan estimate she obtained in May 2021. In a form seeking a security clearance, she described it as a \u201c2nd home.\u201d Both documents appear to undercut the administration\u2019s claims of fraud. <\/p>\n

U.S. District Judge Jia Cobb ruled that the administration had not satisfied a legal requirement<\/a> that Fed governors can only be fired \u201cfor cause,\u201d which she said was limited to misconduct while in office. Cook joined the Fed\u2019s board in 2022. <\/p>\n

Cobb also held that Trump\u2019s firing would have deprived Cook of her due process, or legal right, to contest the firing.<\/p>\n

By a 2-1 vote, a panel of the federal appeals court in Washington rejected the administration\u2019s request to let Cook\u2019s firing proceed.<\/p>\n

Trump\u2019s lawyers have argued that even if the conduct occurred before her time as governor, her alleged action \u201cindisputably calls into question Cook\u2019s trustworthiness and whether she can be a responsible steward of the interest rates and economy.\u201d<\/p>\n

___<\/p>\n

AP Economics Writer Christopher Rugaber contributed to this report.<\/p>\n

___<\/p>\n

Follow the AP\u2019s coverage of the Federal Reserve System at https:\/\/apnews.com\/hub\/federal-reserve-system<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 The Supreme Court on Wednesday allowed Lisa Cook to remain as a Federal Reserve governor…\n","protected":false},"author":2,"featured_media":195316,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[23,28,2302,3506,3505,12,109,8877,9092,793,681,3138,77529,3319,17110,1303,3,111,113169,59740,21,792,19,22,20,25,24,800],"class_list":["post-195315","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-america","tag-business","tag-courts","tag-dc-wire","tag-district-of-columbia","tag-donald-trump","tag-economic-policy","tag-federal-reserve-system","tag-ga-state-wire","tag-general-news","tag-georgia","tag-government-and-politics","tag-jia-cobb","tag-joe-biden","tag-lisa-cook","tag-michigan","tag-news","tag-politics","tag-rebecca-slaughter","tag-stephen-miran","tag-united-states","tag-united-states-government","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa","tag-washington-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/195315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=195315"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/195315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/195316"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=195315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=195315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=195315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}