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Supreme Court Keeps Fed Governor Lisa Cook in Place, Sets January Review

The case asks whether the Federal Reserve Act’s undefined "for cause" standard allows a president to oust a governor based on alleged pre‑appointment conduct.

Overview

  • In a brief order, the justices declined to lift lower‑court injunctions and set arguments for January 2026, so Cook remains on the Federal Reserve Board for now.
  • U.S. District Judge Jia Cobb issued a preliminary injunction finding likely violations of the Federal Reserve Act and due‑process rights, and a D.C. Circuit panel refused emergency relief by a 2–1 vote.
  • The administration cites 2021 mortgage representations as removal "cause," with the solicitor general arguing the president’s determination should foreclose review, while Cook denies wrongdoing and has not been charged.
  • Cook will be able to vote at the Oct. 28–29 and December Federal Open Market Committee meetings; the Fed has said it will abide by whatever the courts decide.
  • Former Fed chairs, Treasury officials, and hundreds of economists urged protection of central‑bank independence, and a separate December case on agency removals could influence what remedies courts may order.