Supreme Court prevents Trump from firing Lisa Cook from the Federal Reserve

The Supreme Court of the United States decided, on Wednesday (1/10), to temporarily block the attempt of President Donald Trump (Republicans) to remove Lisa Cook, governor of the Federal Reserve (Fed), the US Central Bank. The decision ensures that Cook remains in office at least until January 2026, when judges should analyze the oral arguments of the case.

Cook, who took over the post in August, was targeted by Trump’s mortgage fraud, which she denies. The economist filed a lawsuit claiming that her constitutional rights were violated, as she received no formal notification from the accusations or opportunity for defense before the attempted dismissal. In addition, he argued that the justifications presented by the President contradicted the Federal Reserve Law, which only allows the removal of governors “for just cause”.

Central Bank independence risk

The case is seen as highly sensitive because it involves Fed’s autonomy from the White House, considered essential for US economic stability. “It is far from over, but this is a victory for the independence of the Fed for now,” said Tim Mahedy, former senior advisor of the Federal Reserve Bank of San Francisco.

The Supreme Court had supported the Republican President in other similar disputes this year, involving layoffs in different federal agencies. But in the case of Lisa Cook, the judges preferred to maintain the decision of lower instances that indicated the likelihood of the economist’s victory in the process.

White House Reactions and Cook Defense

In an official statement, White House spokesman Kush Desai said that “President Trump legally removed Lisa Cook from the Federal Board of Governors for cause. We await the final victory after we present our oral arguments before the Supreme Court in January.”

Cook’s lawyers, Abbe Lowell and Norma Eisen, evaluated the decision as positive. “The court’s decision rightly allows the governor Cook to continue in its role in the Federal Reserve Council, and we await new procedures consistent with the order of the Court.”

Who is Lisa Cook

Lisa D. Cook is a prominent American economist, recognized for his performance at the Federal Reserve and being The first black woman to occupy a seat on the institution’s council in over 100 years. Nominated by President Joe Biden in 2022, he was reappointed to a 14 -year term, valid until 2038, and is part of the Federal Open Market Committee (FOMC), responsible for defining the interest rate of the United States.

Graduated from Spelman University, Cook did a doctorate in Economics from the University of California, Berkeley, and performed postdoctoral in Harvard. He was also a professor at Michigan State University and produced research on international central banks, financial crises, racial inequalities and innovation.

In article published in New York Timeshe reported, alongside researcher Anna Gifty Opoku-Agyeman, the challenges faced by black women in the economy-in 2023, only four of the 492 USA economics were black. Among his best known work is a study on the impact of patent production lynchings in the US, which concluded that black violence drastically reduced the potential for inventions in the country.

With tickets to the Economic Advisory Council of President Barack Obama and the Treasury Department, Cook consolidated a trajectory of influence on public policies. Since his arrival at the Fed, he has stood out in debates on artificial intelligence, innovation and productivity, reinforcing the role of new technologies in the future of the global economy.

__

with agencies