SC Lets Lisa Cook Remain as Fed Governor for Now

The Supreme Court has allowed Lisa Cook to remain as a Federal Reserve governor for now, declining to act on the Trump administration’s effort to immediately remove her from the central bank, Mark Sherman reported for the Associated Press (AP).

The justices will consider whether to block a lower court ruling in Cook’s favor while her challenge to Trump’s firing attempt continues. (Photo: Brookings Institution Flickr)

In a brief unsigned order, the high court said it would hear arguments in January on Republican President Donald Trump’s bid to force Cook off the Fed board.

The justices will consider whether to block a lower-court ruling in Cook’s favor while her challenge to Trump’s firing attempt continues. The order was a rare instance of Trump not quickly getting what he wanted from the court in an emergency appeal.

Separately, the justices are set to hear arguments in December in a related case over Trump’s actions to remove members of boards that oversee other independent federal agencies.

The central question is whether Trump can fire those officials at will. But a second issue could directly affect Cook’s fate: whether federal judges can block such firings outright, or only order back pay for officials wrongfully dismissed.

Trump had sought to oust Cook before the Fed’s September policy meeting, but a judge ruled the move illegal, and a divided appeals court rejected the administration’s emergency appeal.