SCOTUS overturns dismissal of Fed Governor Lisa Cook

The Supreme Court (SCOTUS) on Monday overturned President Donald Trump’s order to fire Federal Reserve (Fed) Governor Lisa Cook, who was accused of committing fraud when applying for a mortgage.

With five votes in favor of blocking Trump’s order and four against, Cook will remain in office for the time being.

Chief Justice John Roberts stated that Trump cannot arbitrarily fire any independent Fed official “for any reason, or no reason.”

“To be clear, the ultimate question of whether the President can remove Cook for cause will depend in part on the underlying facts,” Justice Roberts wrote in the ruling.

“In this opinion, we have not addressed the facts, as they have yet to be found or analyzed under the relevant legal standards. Rather, we have simply addressed the parties’ arguments about the appropriate legal standards under which the facts must be evaluated,” added the chief justice.

Last year, Trump removed Cook from office for alleged mortgage fraud, days before the Department of Justice (DOJ) launched an investigation into the Fed governor.

Shortly thereafter, Cook filed a lawsuit against Trump, alleging that the dismissal was based on "unsubstantiated accusations." From that moment on, a legal battle began that concluded with the Supreme Court ruling in favor of the Fed governor.

Nominated by former President Joe Biden, Cook took office in 2022.