Supreme Court Blocks Removal of Lisa Cook

The U.S. Supreme Court on Oct. 1 issued a brief unsigned order declining to allow President Trump to immediately remove Federal Reserve Governor Lisa Cook, keeping her on the Board of Governors until the court hears arguments in January 2026. The administration sought emergency relief after Trump moved in August to oust Cook amid allegations she misstated information on mortgage forms, but Cook sued saying she was denied meaningful process and a lower court granted an injunction blocking her removal. A divided appeals court rejected the administration’s emergency bid before the high court’s deferral. Justices will now consider whether presidents can remove Fed governors only “for cause” and whether courts can block firings or are limited to awarding back pay, a rare test of presidential authority with implications for Fed independence and the separation of powers. Cook, the first Black woman to serve on the Fed’s governing board, will continue to participate in upcoming policy meetings while the litigation proceeds.