In an unsigned order, the Supreme Court delayed until January its decision on the president’s attempt to immediately remove Cook.
Meghan Roos2 mins
The Federal Reserve official President Donald Trump attempted to fire in August can keep her job until at least January 2026, the U.S. Supreme Court said in an Oct. 1 order.
Through its order, the high court is deferring action on Trump's request to remove Fed Governor Lisa Cook while her lawsuit challenging her termination plays out.
How we got here: On Aug. 25, Trump announced his intent to fire Cook over allegations that she committed mortgage fraud in 2021, before her term at the Fed began in 2022. Cook, who has been neither charged nor convicted of any crime, denied the allegations. Cook sued to keep her job days later, arguing that the president did not have cause to fire her.
On Sept. 9, U.S. District Judge Jia Cobb allowed Cook to keep her position at the Fed while the legal dispute played out. After Trump elevated the issue to the Supreme Court, several former Treasury Department secretaries and former Fed officials co-signed a letter raising concerns about the future of the central bank's independence if the court permitted Cook's immediate termination.
What happens next: The Supreme Court's decision allows Cook to retain her position on the Fed's Board of Governors until at least January 2026. At that time, the high court will hear oral arguments on the issue of whether Cook can continue to stay at the Fed while her lawsuit proceeds.
Cook began serving as a Fed governor in May 2022. Her current term expires in January 2038.
Real Estate News has reached out to Cook's legal team and the U.S. Department of Justice for comment.
