The United States Supreme Court says it will hear arguments over President Donald Trump’s efforts to remove Federal Reserve Governor Lisa Cook from her post. The court’s announcement means Cook will stay in the job for now.
The high court announced the decision on Wednesday.
The White House has been trying to remove Cook in the first-ever bid by a president to fire a Fed official, an unprecedented challenge to central bank independence.
The justices declined to immediately decide a Department of Justice request to put on hold a judge’s order temporarily blocking the Republican president from removing Cook, an appointee of Democratic former President Joe Biden, while litigation over the termination continues in a lower court.
The justices said they would hear the case in January.
In creating the Fed in 1913, Congress passed a law called the Federal Reserve Act, which included provisions to shield the central bank from political interference, such as allowing governors to be removed by a president only “for cause”, although the law does not define the term or establish procedures for removal. The law has never been tested in court.
Washington, DC-based US District Judge Jia Cobb on September 9 ruled that Trump’s claims that Cook committed mortgage fraud before taking office, which Cook denies, likely were not sufficient grounds for removal under the Federal Reserve Act.
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