Supreme Court signals narrow ruling for Fed governor Lisa Cook

After two hours of arguments on Wednesday, the Supreme Court appeared likely to rule narrowly and provisionally in favor of Federal Reserve governor Lisa D. Cook, whom President Trump has sought to remove based on an accusation of mortgage fraud. Some justices voiced reluctance to undermine the Federal Reserve’s independence, while others said the alleged fraud, which Ms.

Cook has denied and for which she has not been charged, did not clearly meet the statutory “for cause” standard that permits removal of Fed officials. The court seemed likely to send the case back to lower courts for fuller factual development and appeared inclined to leave Ms. Cook in place while the litigation proceeds.

Several justices questioned whether Mr. Trump’s social media post announcing his intent to fire Ms. Cook satisfied due process. The solicitor general, D. John Sauer, said she was not entitled to particular procedures and that she had received notice via social media before a formal firing letter arrived; Ms.

Cook’s lawyer, Paul D. Clement, said due process requires notice of charges, a hearing and an impartial decisionmaker. The record includes Mr. Trump’s post, “Cook must resign, now!!!,” which came 30 minutes after a separate social media post said allegations about her mortgage records had been referred to the Justice Department.

Key Topics

Politics, Lisa Cook, Federal Reserve, Donald Trump, Supreme Court, Federal Reserve Act