Supreme Court Lets Fed’s Cook Simmer In Job Until Oral Arguments In January

The US Supreme Court has allowed Federal Reserve Governor Lisa Cook remain on the job until they hear oral arguments in her lawsuit after Trump fired her in late August over allegations of mortgage fraud.

The Wednesday order from the court – which has largely sided with Trump this year in cases challenging his firings of officials across the federal government – means Cook can continue to participate in Fed operations for at least the next three months. 

The move defers Trump’s bid to remove Cook while the DOJ appeals a lower court ruling that said she was likely to win her lawsuit over the firing. No justice noted a dissent from the order. 

The Fed has remained uninvolved in the fight – and says it will respect whatever ruling comes down. They are scheduled to meet on Oct. 28-29, where they will vote on whether to lower interest rates again. 

The court fight over Cook’s position on the Fed unfolded rapidly ahead of its most recent policy meeting on Sept. 16-17. Lower courts allowed Cook to participate and the board voted to lower interest rates by a quarter percentage point. Following the meeting, the Justice Department asked the Supreme Court to intervene. -Bloomberg

Recently, a group of former Fed and Treasury officials who served under both Republican and Democrat administrations filed an appeal to justices in a ‘friend-of-the-court brief,’ which urged the court to leave Cook in place.