The Supreme Court will hear arguments in January over whether the Trump administration can fire Federal Reserve governor Lisa Cook over allegations of mortgage fraud — and will let her keep her job in the interim.
President Trump notified Cook of her dismissal from the central bank on Aug. 25, following claims raised by federal housing regulator Bill Pulte, who charged that Cook had improperly listed both an Atlanta condo and a Michigan home as her primary residence to receive more favorable home loan terms.
Cook sued to keep her job and her ouster was blocked by both a federal judge and an appeals panel.
Trump notified Lisa Cook of her dismissal from the central bank on Aug. 25, 2025. APThe White House then appealed to the high court, which announced Wednesday it would take up the case for oral argument, while the administration’s bid to scrap the lower court rulings keeping Cook in place is “deferred.”
The Trump administration has a strong track record with its motions to the Supreme Court, having mainly enjoyed a string of victories in its effort to quash injunctions and stays.
Solicitor General D. John Sauer had argued that the lower court ruling keeping Cook on the central bank amountd to “improper judicial interference” in the executive branch and could cause harm due to the Fed’s “uniquely important role” in the economy.
At the heart of Cook’s lawsuit to keep her job is the Federal Reserve Act of 1913, which stipulates that Fed governors can be fired for “cause.”
Because Cook has yet to be charged with a crime, her legal team has argued the Trump administration’s rationale doesn’t fulfill the statutory requirement for “cause.”
Trump’s move to fire Cook came amid a broader pressure campaign for the Fed to lower its benchmark interest rate and provide a jolt to the economy.
Earlier this month, the Federal Open Market Committee, voted to slash its rate target by 25 basis points, the first such reduction since December.
Cook was among the governors who voted in favor of the cut.
Fed Chair Jerome Powell has defended the panel’s caution with interest rates, contending that there are unknowns about the potentially inflationary effects of Trump’s tariffs.
The Supreme Court will begin its new term Oct. 6.
