Supreme Court says Federal Reserve's Lisa Cook can remain governor for now

Oct. 1 (UPI) — Federal Reserve Governor Lisa Cook will be permitted to stay on the central bank board at least through next year after legal questions over her termination by U.S. President Donald Trump.

On Wednesday, the U.S. Supreme Court ruled that Cook can remain on the job on an interim basis into 2026, and agreed to hear oral arguments in January with a likely ruling before June’s end.

The nation’s high court, however, did not explain the basis of its decision in the brief ruling.

In August, Trump fired Cook over his claims of mortgage fraud which Cook has since denied.

No justice dissented in the rare break from a majority that typically has ruled on the side of the Trump administration over other legal issues.

Trump requested Supreme Court intervention in mid-September, but Cook fought back arguing that he does not have the authority.

U.S. presidents under the Federal Reserve Act are forbidden from arbitrarily removing a federal reserve governor unless evidence of wrongdoing presented a “for cause” reason to do so.

Cook sued Trump over the attempted ousting, citing constitutional protections guaranteed to her as an official of the independent federal board.

On Wednesday, a legal analyst said the court’s ruling on Cook means justices are saying: “we’re not going to act immediately.”

“It wouldn’t end the fight,” MSNBC legal commentator Lisa Rubin commented on a news program on January’s looming Supreme Court hearing on Cook.

According to Rubin, the Fed’s Cook could “continue to fight on the merits weather or not (Trump) is legally entitled to fire her for the long-term.”