Supreme Court Delays Decision on Trump’s Authority to Dismiss Fed Governor Lisa Cook

Supreme Court Delays Decision on Federal Reserve Governor’s Dismissal

WASHINGTON – The Supreme Court has postponed its ruling on whether former President Trump can dismiss Federal Reserve Governor Lisa Cook, scheduling arguments for January.

Current Status of Lisa Cook

This delay allows Cook to maintain her role, preventing Trump from gaining a majority on the traditionally independent central bank board.

Background of the Controversy

Last month, Trump claimed he dismissed Cook “for cause,” pointing to mortgage documents from 2021 where she allegedly declared two properties as her primary residence.

This issue surfaced amid Trump’s dissatisfaction with the Federal Reserve Board, including Cook, for not reducing interest rates as he desired.

Trump’s Appointments and Actions

Following Cook’s dismissal, Trump appointed Stephen Miran, his White House Council of Economic Advisers chair, to a temporary position on the seven-member board, joining two other Trump appointees.

Federal Reserve’s Independence

The Federal Reserve Act of 1913 was designed to ensure the board’s independence from political influence. Members are appointed by the president, confirmed by the Senate, and serve staggered 14-year terms unless “removed for cause.”

Allegations Against Cook

In August, Bill Pulte, Trump’s Federal Housing Finance Agency director, accused Cook of mortgage fraud for securing two loans in 2021, one for $203,000 in Ann Arbor, Michigan, and another for $540,000 in Atlanta, both allegedly claimed as primary residences.

Cook’s attorneys stated she informed the lender that the Atlanta condo was intended as a vacation home.

Legal Proceedings

Trump sent Cook a letter on Aug. 25, asserting his right to remove her “for cause” based on the allegations. Cook contested this, arguing the claims did not meet the legal threshold for cause and that she was denied a hearing.

A federal judge in Washington sided with Cook, blocking her dismissal, noting the unproven allegations predated her Federal Reserve appointment. The appeals court also supported this decision by a 2-1 vote.

Supreme Court’s Involvement

Trump’s legal team filed an emergency appeal to the Supreme Court, arguing the president’s authority to dismiss a governor deemed untrustworthy. However, the justices opted for a full hearing and written decision instead of immediate action.