OAN Staff Brooke Mallory
12:43 PM – Thursday, October 2, 2025
The Supreme Court on Wednesday postponed a decision on whether President Donald Trump can immediately remove Federal Reserve board member Lisa Cook, instead agreeing to hear oral arguments in the case early next year.
The ruling allows Cook to remain in office while the high-profile legal question is “being resolved.” According to a brief order, the court will hear arguments in January, with a decision expected before the end of June.
President Trump had requested that the High Court allow him to fire Cook immediately while litigation continued in the lower courts. Nonetheless, the Supreme Court’s decision to hold off on its ruling, for now, leaves open the possibility for the administration to pursue removal later.
Under the Federal Reserve Act, U.S. presidents can remove Federal Reserve governors, but only “for cause,” meaning there must be evidence of wrongdoing. Inefficiency, neglect of duty, or malfeasance in office are considered examples of “cause.”
However, legal experts note that interpretations of “for cause” have varied historically, and the upcoming Supreme Court decision could set a significant precedent for the limits of presidential authority over the Federal Reserve.
Meanwhile, Trump maintains that he fired Cook for cause, citing mortgage fraud allegations made by Federal Housing Finance Agency Director Bill Pulte. Pulte has alleged that Cook misrepresented two properties as her primary residence in order to obtain favorable mortgage terms — claims that Cook has consistently denied.
In a statement following Wednesday’s news, the White House stated that President Trump “lawfully removed Lisa Cook for cause,” adding “We look forward to presenting our oral arguments before the Supreme Court in January.”
Cook’s lawyers, Abbe Lowell and Norm Eisen, also responded to the news, saying, “Wednesday’s decision rightly allows Governor Cook to continue in her role on the Federal Reserve Board, and we look forward to further proceedings consistent with the Court’s order.”
Trump moved to fire Cook in late August, prompting her to file a federal lawsuit. She argued that the 47th president lacked the authority to remove her while she was challenging his decision in court.
The Supreme Court has allowed similar temporary stays in previous cases, and it has agreed to hear a related case regarding the removal of another federal official, with arguments scheduled for December.
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