On Wednesday, the Supreme Court allowed the governor of the Federal Reserve Lisa Cook to remain in his post of oral arguments going in January to find out if President Donald Trump has a legal cause to dismiss her.
The decision of the court is a hard blow for Trump, who has asked the federal courts several times and without success to allow him to put an end to Cook of the Council of Governors of the Fed without delay while his trial contesting his withdrawal is pending.
Trump cited allegations that Cook has committed mortgage fraud as a reason to dismiss it to the board of directors of seven members.
But his first efforts to withdraw it in August came after him, for months, had put him pressure without success, the president of the Fed, Jerome Powell and other members of the Central Bank, to reduce interest rates
Cook denies any reprehensible act in the context of the statements she made before joining the Fed to ask for mortgages on two houses she has in Michigan and Georgia. She was not legally responsible for making false declarations on these mortgage requests.
In his order on Wednesday, the Supreme Court declared thoroughly, without development, that Trump’s request to suspend the injunction of a federal district court against the withdrawal of Cook is “a delayed oral argument in January 2026”. The actual date of the argument has not been defined.
The ordinance indicated that the Supreme Court’s clerk would establish a calendar for the deposit of memories in the case, including those of external parties who are interested in the result.
The effort of the Trump administration to withdraw Cook is considered as a potential case of the opportunity to maintain the long -standing veneer of the Fed of independence of political interference.
Trump insisted that the accusations against Cook meet the “cause” standard required by the Federal Reserve Act to remove a Fed official.
The Ministry of Justice in previous deposits had called for the injunction prohibiting Trump from dismissing Cook while his trial is pending “yet another case of poor legal interference with the president of the president”.
Cook’s lawyers, Abbe Lowell and Norm Eisen, in a statement after the Supreme Court made his order, said, said “”The court’s decision rightly allows Governor Cook to continue his role in the Federal Reserve Board, and we are delighted to continue the procedures in accordance with the court order. “”
The White House spokesman Kush Desai said in a statement, “President Trump legally withdrew Lisa Cook because of the Governors’ Council of the Federal Reserve”.
“We are impatiently awaiting the ultimate victory after presenting our oral arguments before the Supreme Court in January,” said Desai.
The Fed refused to comment other than to return its position that it will respect any court decision.
Wednesday’s command allows the Fed to carry out business as usual, at least until the end of the year.
Cook will vote during the meetings of October and December of the federal committee on the open market and perhaps at the January meeting of the FOMC.
The FOMC in September voted to reduce its reference loan rate by a quarter of percentage.
In addition, officials indicated additional discounts of trimester percentage points during each of the two remaining meetings this year.
Cook participated in this FOMC meeting despite Trump’s demonstrations.
She voted to reduce the quarter-point, while the new appointment of the governor of Trump’s Fed, Stephen Miran, dissipated from the decision, saying that he wanted a reduction of half a point.
Miran also indicated in the “dowry conspiracy” of the individual expectations committee that he wanted to see another 1.25 percentage points allowed the rate of funds by the end of 2025.
Cook has not preferably indicated, however, as Powell, she recommended a cautious approach to the relaxation of politics.
– CNBC Jim forkin contributed to this story.
