WASHINGTON: The US Supreme Court has barred President Donald Trump from immediately firing Federal Reserve Governor Lisa Cook.
This decision comes as the president mounts multiple challenges testing the central bank’s independence.
The court deferred Trump’s request pending oral argument scheduled for January 2026.
This ensures Cook will remain in her post until the case receives a full hearing.
Trump attempted to fire Cook over the summer, alleging she falsified mortgage agreement statements.
Cook serves on the Fed’s powerful seven-person governing board.
She has filed a lawsuit challenging her dismissal, arguing she was denied a meaningful chance to contest the allegations.
A White House spokesperson stated the administration had lawfully removed Cook.
The spokesperson expressed confidence in ultimate victory following January’s Supreme Court arguments.
Cook currently remains a member of the Fed’s governing board and its interest rate-setting committee.
She is the first Black woman to serve on the independent central bank’s governing board.
Her term is scheduled to continue until 2038.
Trump has strongly criticised the Fed’s decision to maintain elevated interest rates.
The Fed continues battling inflation, which remains above its two percent target.
Congress has given the US central bank a dual mandate to act independently on inflation and employment.
The Supreme Court’s delay marks rare pushback from the conservative-dominated court.
Trump’s attempts to fire a Fed member have unnerved investors.
Nearly 600 economists recently expressed support for Cook and central bank autonomy in a letter.
A Federal Reserve spokesperson referred to an August statement committing to abide by any court decision. – AFP
