WASHINGTON — The U.S. Supreme Court has allowed Federal Reserve Governor Lisa Cook to remain in office while litigation continues over President Donald Trump's attempt to remove her, preserving the status quo in a closely watched dispute over the independence of the nation's central bank.
In a 5-4 decision issued on June 29, the justices denied the administration's request to lift a lower court order that blocked Cook's removal, concluding that the government had not demonstrated it was likely to prevail at this stage of the case. The ruling leaves Cook in her position while the legal challenge proceeds through the federal courts.
Chief Justice John Roberts wrote for the majority, joined by Justices Sonia Sotomayor, Elena Kagan, Brett Kavanaugh and Ketanji Brown Jackson. The court said the administration had failed to provide the procedural protections required before attempting to remove a Federal Reserve governor, including adequate notice and an opportunity to respond.
The dispute stems from Trump's effort to dismiss Cook over allegations of mortgage fraud predating her service on the Federal Reserve Board. Cook has denied the allegations and argued in court that the attempted dismissal was unlawful and failed to satisfy statutory requirements governing the removal of Federal Reserve governors.
The majority emphasized that its ruling was limited to the government's emergency request and did not finally resolve whether Cook may ultimately be removed for cause under federal law. Instead, the decision allows lower courts to continue examining the merits of the case.
In dissent, Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Amy Coney Barrett argued that the court had gone too far in addressing substantive legal questions at the emergency stage or that the president possessed broader constitutional authority over executive branch officials.
The ruling came alongside a separate Supreme Court decision expanding presidential authority to remove leaders of many independent federal agencies, while treating the Federal Reserve differently because of its unique statutory structure and longstanding role in conducting monetary policy independently of day-to-day political influence.
Cook will continue serving on the Federal Reserve Board while the case returns to the lower courts for further proceedings. The Supreme Court did not establish a timetable for any future review on the merits.
