Supreme Court halts Trump's attempt to fire Fed member Lisa Cook
The U.S. Supreme Court has temporarily blocked President Donald Trump's attempt to fire Federal Reserve Board member Lisa Cook, a move seen as a significant victory for the central bank's independence. The ruling means Cook, the first Black woman to serve on the Fed's advisory committee, will keep her position for now. She has 10 years remaining on her 14-year term.
Trump sought to remove Cook over allegations of gross negligence, specifically claims of mortgage fraud raised by Federal Housing Finance Agency Director Bill Pulte. The president argued that these allegations alone justified her dismissal. However, the Supreme Court has yet to fully consider the broader legal and constitutional issues surrounding the dispute.
Cook has denied any wrongdoing, stating through her attorneys that the mortgage fraud allegations stem from a single error in a 2021 document. She claims the effort to remove her is politically motivated, aimed at manipulating the Fed's policy board. The Justice Department has opened a criminal investigation into the matter, but Cook has not been charged with a crime.
The Supreme Court's decision to block Trump's firing attempt underscores the Fed's long-standing independence from direct White House interference. While the court has recognized a president's broad power over executive branch agencies, it has appeared to draw a line at the central bank. The case is still in its early stages, with no lower court having fully reviewed the underlying legal issues.