The Trump administration pledged on Wednesday to continue its legal fight to remove Federal Reserve Governor Lisa Cook after the US Supreme Court blocked her dismissal and scheduled a full hearing for January 2026.
“President Trump lawfully removed Lisa Cook for cause,” White House spokesman Kush Desai said in a statement. “We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January.”
In its short order, the Supreme Court said it would “defer” Trump’s request for Cook’s immediate removal, meaning she remains on the Fed’s Board of Governors until the case is decided. Lisa Cook responds
Cook, appointed by President Joe Biden in 2022 as the first Black woman to serve on the Federal Reserve Board, has said she will not step down. “I will not be bullied,” she told reporters, adding that she would continue fulfilling her duties.
Her current term runs through January 2038, though the final decision now rests with the Supreme Court.
What are the allegations?
Trump has accused Cook of mortgage fraud, claiming she listed two homes in different states as her “primary residence” in 2021, before her Fed appointment. His lawyers argue this undermines her trustworthiness. Cook has firmly denied wrongdoing and has not been charged with any crime.
Who is Lisa Cook?
Before her Fed appointment, Lisa Cook spent nearly two decades as a professor of economics and international relations at Michigan State University. Her research focused on racial disparities, innovation, and financial crises.
She also served as a senior economist at the Council of Economic Advisers during the Obama administration.
Cook’s confirmation process in 2022 was highly contentious. Republicans questioned her qualifications, with Sen. Pat Toomey calling her “grossly unqualified.” Despite opposition, she was confirmed after Vice President Kamala Harris cast a tie-breaking vote.
Since joining the Fed, Cook has frequently spoken about the economic impact of artificial intelligence and supported Chair Jerome Powell’s monetary policies, including the aggressive interest rate hikes of 2022.
In August, she described the weak streak of job growth as “concerning” and warned that the labor market could be at a turning point ahead of the Fed’s September meeting.
Cook was the first Spelman College student to win a Marshall Scholarship, later earning a second bachelor’s degree from Oxford University and a PhD in economics from UC Berkeley.
Born in 1964 in Georgia, she grew up in a family active in the civil rights movement. Her uncle, Samuel DuBois Cook, became the first Black professor at Duke University and was a classmate of Martin Luther King Jr.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
