SCOTUS allows Lisa Cook to stay on Fed board into 2026, accepts case for January argument

(ABC NEWS) — The Supreme Court on Wednesday moved to allow Federal Reserve governor Lisa Cook to remain on the central bank board into 2026, saying it would take up President Donald Trump’s appeal seeking to remove her for cause during a hearing in January.

The Court did not explain its decision. There were no noted dissents.

The decision to let Cook stay on the job pending the outcome of the case marks a sharp break from how the justices have handled other cases involving Trump’s removal power at independent federal agencies. In those cases, a majority of the Supreme Court showed deference to Trump’s firing power, at least on an interim basis, while the litigation plays out.

In August, Trump moved to fire board member Lisa Cook, who sued Trump over her attempted ouster, saying the decision violated her legal protections as an employee at the independent federal agency.

Trump said he removed Cook over mortgage fraud allegations against her. Cook has denied any wrongdoing.

Federal law allows the president to remove a member of the Fed board “for cause,” though no president has attempted such a removal in the 112-year history of the central bank.

Last month, an appeals court upheld a preliminary injunction requiring the Fed to let Cook continue serving in her role as a governor of the Federal Reserve System as her lawsuit moves through the courts. Trump asked the Supreme Court to allow him to remove Cook, but the nation’s highest court denied the request.