The U.S. Supreme Court has ruled that Federal Reserve Governor Lisa Cook can remain in her job pending oral arguments scheduled for January on whether President Donald Trump has legal cause to fire her.
The court’s decision is a blow to Trump, who has repeatedly and unsuccessfully asked federal courts to allow him to terminate Cook from the Federal reserve’s decision-making Board of Governors.
Trump has accused Cook of committing mortgage fraud and said it gives him cause to fire her from the seven-member board that decides on the path of interest rates in the U.S.
Trump has accused several other political adversaries of mortgage fraud, while offering little evidence to support the accusations.
The president’s effort to remove Cook from the Federal Reserve comes months after he unsuccessfully pressured the central bank to lower interest rates.
Cook denies any wrongdoing in connection with statements she made before joining the Fed in applying for mortgages on two homes she owns in Michigan and Georgia.
Cook has not been charged with any crimes or issues related to her home mortgages. Trump has also threatened to fire Fed Chair Jerome Powell before his current term ends in 2026.
In its ruling, the Supreme Court said that Trump’s request to stay a federal district court’s injunction against removing Cook is “deferred pending oral argument in January 2026.”
The actual date for those oral arguments has not yet been set.
The Trump administration’s effort to remove Cook is seen as a potential landmark case on whether to maintain the U.S. central bank’s independence from political interference.
Many analysts and economists have warned that a loss of central bank independence could have devastating consequences for financial markets and the U.S. economy.
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