Supreme Court rejects Trump bid to fire Fed's Lisa Cook as legal case continues

The U.S. Supreme Court on Monday declined to reinstate former President Trump's bid to remove Federal Reserve Governor Lisa Cook from her post, allowing her to continue serving while legal proceedings unfold. The justices' 5-4 decision rejected Trump's emergency request to oust Cook, effectively leaving intact a lower court ruling that had blocked her firing.

Cook's legal challenge to her removal is ongoing. Trump had attempted to fire Cook from the Fed Board in August, a move unprecedented in the central bank's 112-year history. This action occurred amid broader efforts to remove officials appointed by Democrats from independent agencies and as Trump expressed frequent frustration with the Fed's interest rate policies.

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sufficient cause

Trump accused Cook of making misrepresentations on mortgage filings for two properties before her 2021 nomination to the Fed by President Joe Biden. He cited "sufficient cause" for her removal, alleging "deceitful and potentially criminal conduct in a financial matter." Cook has consistently denied any wrongdoing and faces no criminal charges. She promptly filed a lawsuit, asserting that Trump violated the Federal Reserve Act, which allows removal "for cause" but does not define the term. Cook also argued her due process rights were violated, as she received neither notice of the claims nor an opportunity to respond before her dismissal.

A federal judge had previously ordered Cook's reinstatement, finding Trump's removal attempt invalid. U.S. District Judge Jia Cobb also indicated Cook was likely to prevail on her due process claim. A divided panel of the U.S. Court of Appeals for the District of Columbia had also allowed Cook to remain at the Fed, leading the Trump administration to seek intervention from the Supreme Court.

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deceitful and potentially criminal conduct in a financial matter.