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Supreme Court Temporarily Blocks Trump's Removal of Fed Governor Lisa Cook

The case tests whether statutory 'for cause' limits shield Fed governors from presidential removal.

Overview

  • In a brief unsigned order, the Court left lower-court injunctions intact and scheduled oral arguments for January.
  • A district judge and a federal appeals panel had already halted the ouster, and the Justice Department’s bid to allow immediate removal was denied.
  • Trump alleges Cook made false statements on mortgages before her appointment; Cook rejects the claims and has not been charged with any crime.
  • The attempt to remove a sitting Fed governor is without precedent and has drawn warnings from former Fed chairs and senior economists about threats to central-bank independence.
  • The justices will also weigh related cases on presidential removal authority and available remedies, while Cook continues to serve and can take part in upcoming Fed meetings.