Chair of the Federal Reserve Jerome Powell, left, administers the oath of office to Lisa Cook, right, to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022 in Washington, D.C.  (Photo by Drew Angerer/Getty Images)

WASHINGTON — The U.S. Supreme Court will take up in January the question of President Donald Trump’s firing of Federal Reserve Board governor Lisa Cook, according to an order filed by the court Wednesday.

The unsigned order states Trump’s application to stay a lower court’s decision to keep Cook on board while the case plays out will be deferred until oral arguments on an unspecified date in January. 

Trump tried to remove Cook from the Federal Reserve Board of Governors in late August, alleging she lied on a mortgage application. A federal district judge sided with Cook in early September after she challenged the president in court.  

A three-judge panel then split 2-1 in rejecting Trump’s appeal to overturn the lower court decision and affirmed on Sept. 16 that Cook could keep her position as the case plays out. 

Trump asked the Supreme Court to intervene, adding to his series of petitions to the justices since his second term began. The decision could have major bearing on Trump’s powers as the chief executive.

White House press secretary Karoline Leavitt told reporters during Wednesday’s briefing that the administration remains confident about the legality of Cook’s firing.  

“Look, we have respect for the Supreme Court but they’re going to hear the actual case and make a determination on the legal argument in January. And we look forward to that because we maintain that she was fired well within the president’s legal authority to do so. She was removed from the board. And we look forward to that case being fully played out at the Supreme Court,” Leavitt said.

The legal battle is occurring against a backdrop of Trump’s ongoing pressure to insert himself in the decisions of the independent central bank. 

For months Trump and his allies have attacked Federal Reserve Chair Jerome Powell with antagonizing social media posts amid Trump’s continued campaign for lower interest rates.

The president and Senate Republicans recently installed White House economist Stephen Miran on the board. Miran is taking a leave of absence as chair of the White House Council of Economic Advisers while he serves in the role.

The Fed lowered interest rates for the first time in 2025 by a quarter percentage point on Sept. 17. Miran was the only board governor to vote against the change after lobbying for a half-point cut.

Cook, the first Black woman to serve on the Fed board, was appointed by former President Joe Biden in 2023 and confirmed by the Senate in a 51-47 vote.

The Federal Reserve’s dual mandate is to maximize the nation’s employment while also stabilizing prices by keeping inflation low and steady over a long period of time. Among the tools the central bank uses to accomplish the two missions is regulating interest rates to cool inflation or stimulate the economy.

Chair of the Federal Reserve Jerome Powell, left, administers the oath of office to Lisa Cook, right, to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022 in Washington, D.C. (Photo by Drew Angerer/Getty Images)

WASHINGTON — The Trump administration on Thursday asked the Supreme Court to overturn a lower court ruling and allow the president to fire Federal Reserve Board member Lisa Cook.

Solicitor General D. John Sauer wrote in a 41-page appeal that a district court blocking President Donald Trump’s efforts to remove Cook “involves yet another case of improper judicial interference with the President’s removal authority—here, interference with the President’s authority to remove members of the Federal Reserve Board of Governors for cause.”

Trump has had an ongoing dispute with the independent Federal Reserve Board for months, repeatedly calling on them to lower interest rates, which they did on Wednesday. 

Trump said in late August that he wanted to remove Cook, the first Black woman to serve on the Federal Reserve Board, alleging she falsified some information in a mortgage application. 

Cook’s attorneys filed a lawsuit in federal court a few days later, arguing that Trump’s attempts were political and violated her due process rights. 

U.S. District Judge Jia M. Cobb granted a preliminary injunction in early September, writing the case marks the first time in the Federal Reserve’s 111-year history that a president has sought to remove one of its members “for cause.”

The Federal Reserve Act doesn’t actually define what “for cause” entails, but Cobb wrote that reasons for firing under the law “are limited to grounds concerning an official’s behavior in office and whether they have been faithfully and effectively executing statutory duties. 

“The ‘for cause’ standard thus does not contemplate removing an individual purely for conduct that occurred before they assumed the position.”

The Trump administration appealed that ruling to the United States Court of Appeals for the District of Columbia.

A three-judge panel from that court earlier this week rejected the Trump administration’s request to overturn the district court’s preliminary injunction while the case proceeds.

The 2-1 ruling split Judge Gregory G. Katsas, whom Trump nominated during his first term, and Judges J. Michelle Childs and Bradley N. Garcia, both nominated by former President Joe Biden.

Ariana Figueroa contributed to this report.

Chair of the Federal Reserve Jerome Powell, left, administers the oath of office to Lisa Cook, right, to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022 in Washington, D.C. (Photo by Drew Angerer/Getty Images)

WASHINGTON — An appeals court late Monday rejected the Trump administration’s request to move ahead with firing Federal Reserve board member Lisa Cook, as the president tries to pressure the independent board to lower interest rates. 

The 2-1 decision will allow Cook to partake in Tuesday’s Federal Reserve meeting, where the board will vote on whether to adjust interest rates. 

The Trump administration is likely to appeal the decision to the Supreme Court. 

If Trump is successful in removing Cook and is able to nominate a replacement, he could have a majority of Fed members who are aligned with his desire to lower interest rates to boost the economy.

Trump nominee approved

Cook, appointed by former President Joe Biden, is the first Black woman appointed to the Fed, and she has consistently voted against lowering interest rates since joining the board in 2022. Her term ends in 2038. 

Late Monday, the U.S. Senate also approved Trump’s nominee for an open spot at the Fed, Stephen Miran, in a 48-47 vote.

While the Fed is an independent agency, Miran will continue to serve as the head of the White House’s Council of Economic Advisers.

In a social media post Monday, the president called out Federal Reserve Chair Jerome Powell, and pressed that he “MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!.”

Appeals court splits

In the appeals court decision on Cook, D.C. Circuit Judge Gregory G. Katsas, whom Trump appointed in 2017, split with Judges J. Michelle Childs and Bradley N. Garcia, both appointed by Biden.

Last week a federal judge ruled to keep Cook in her position, determining that Trump administration allegations of mortgage fraud lacked evidence and did not meet the threshold for removing Cook under “just cause.”

Katsas agreed with the Trump administration’s argument that the president has the right to remove a Fed member for “just cause.” 

“This broad definition ‘give[s] the President more removal authority than other removal provisions’ imposed by Congress or reviewed by the Supreme Court,” Katsas wrote in his dissent. 

Childs and Garcia did not address the “just cause” argument but said the lack of due process Cook received in her removal warranted blocking Trump’s attempt to fire her.  

“Because Cook’s due process claim is very likely meritorious, there is no need to address the meaning of ‘for cause’ in the Federal Reserve Act in this emergency posture,” the majority wrote in the opinion.

A Trump official referred Cook to the Department of Justice, accusing her of improperly filing paperwork about her residence that allowed her to get a more favorable mortgage rate. Reuters obtained Cook’s paperwork and found no evidence of tax rule violations. 

Federal Reserve Chair Jerome Powell administers the oath of office to Lisa Cook to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022, in Washington, D.C. (Photo by Drew Angerer/Getty Images)

WASHINGTON — The Trump administration made public Wednesday its plans to appeal a lower court ruling that keeps Federal Reserve governor Lisa Cook on the independent central bank’s board, for now.  

In a 49-page opinion released late Tuesday, U.S. District Judge Jia M. Cobb wrote that President Donald Trump “violated the Federal Reserve Act because (Cook’s) purported removal did not comply with the statute’s ‘for cause’ requirement” and that his attempts to remove Cook from the board “deprived her of procedural rights guaranteed by the U.S. Constitution.”

Trump said in late August that he wanted to remove Cook, the first Black woman to serve on the Federal Reserve Board, alleging she falsified some information in a mortgage application. 

Cook’s attorneys filed a lawsuit in federal court a few days later, arguing that Trump’s attempts were political and violated her due process rights. 

Trump’s targeting of Cook comes amid his pressure campaign on Federal Reserve Board Chair Jerome Powell to lower interest rates. 

Trump, who has been angling for more influence over the central bank, swiftly nominated his adviser Stephen Miran to fill a separate vacancy on the board ahead of the Fed’s meeting next week where members are widely expected to lower rates.

U.S. Senate Republicans advanced Miran’s nomination out of committee Wednesday morning. Miran is the chair of the White House Council of Economic Advisers.

Ruling seen as affirming Fed independence

Cobb said the case marks the first time in the Federal Reserve’s 111-year history that a president has sought to remove one of its members “for cause.”

The Federal Reserve Act doesn’t actually define what “for cause” entails, but Cobb wrote that reasons for firing under the law “are limited to grounds concerning an official’s behavior in office and whether they have been faithfully and effectively executing statutory duties. 

“The ‘for cause’ standard thus does not contemplate removing an individual purely for conduct that occurred before they assumed the position.”

Cook’s attorney’s Abbe David Lowell, of Lowell and Associates, and Norm Eisen, head of the advocacy organization Democracy Defenders Fund, hailed the district court injunction.

“The court’s ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference,” Lowell and Eisen said in a statement Wednesday morning. 

“Allowing the president to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law. Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor member.”

Judge Cobb agreed with their assessment that the president seeking to remove Cook represented irreparable harm and that “the public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement.”

Cobb wrote that she “likely cannot directly ‘enjoin the President in the performance of his official duties’ to require him to reappoint Cook.” So she instead issued a preliminary injunction directing Powell “and the Board of Governors to allow Cook to continue to operate as a member of the Board for the pendency of this litigation.”

Attorneys for the Trump administration notified the district court they plan to appeal Cobb’s preliminary injunction to the the United States Court of Appeals for the District of Columbia. 

This story was updated at 4:33 p.m.