Supreme Court intervenes to protect Lisa Cook's position on Fed board

In the United States, the Supreme Court has intervened in a significant case regarding Federal Reserve governor Lisa Cook. On October 1, 2025, the Court decided to allow Cook to remain on the Federal Reserve Board of Governors as her legal battle against President Donald Trump's attempt to fire her continues. The Supreme Court has scheduled a hearing for January 2026 to discuss whether the President has the authority to remove Cook for alleged misconduct. This move is notable, especially as it differs from previous cases involving Trump's firing powers over other independent federal agencies, where the Court demonstrated more deference to the President's authority. Cook, a Biden appointee, has faced allegations of mortgage fraud, which she has denied, asserting that Trump's actions threaten the independence of the Federal Reserve. In the months preceding this ruling, a lower appellate court had previously upheld a preliminary injunction, allowing Cook to retain her position while her lawsuit navigates through the legal system. Trump's administration had made an emergency appeal to the Supreme Court, expressing confidence that their arguments would prevail. However, Cook's legal team emphasized the importance of ensuring some form of accountability and checks against the President's power to remove independent agency governors. The dispute centers not only on Cook's employment status but also on the broader implications for the Federal Reserve's independence, a cornerstone of economic stability in the U.S. and a significant factor in maintaining public confidence in the central bank's operations and decisions.