Overview

• The Supreme Court declined emergency action and scheduled arguments for January 2026, allowing Lisa Cook to remain on the Federal Reserve Board for now.
• Lower courts had already blocked President Trump’s attempt to remove Cook and ordered her reinstated, and the high court left those rulings in place pending review.
• The White House maintains Cook was lawfully removed for cause based on allegations she falsified mortgage documents, which she denies.
• The Justice Department has opened an investigation into alleged bank fraud tied to the mortgage claims, according to reporting, and its status remains unresolved.
• Scholars and market watchers call the attempted midterm dismissal unprecedented and warn it could undermine Fed independence, noting earlier market volatility after the removal announcement.