Supreme Court to hear case over Federal Reserve governor Lisa Cook

Businessinsider reports the Supreme Court will hold oral arguments on Wednesday on Federal Reserve Gov. Lisa Cook's future, a case intensified by a criminal investigation into Fed Chair Jerome Powell and Justice Department subpoenas to the central bank.

Cook, a Biden nominee sworn in 2022 and the first Black woman to serve on the Federal Reserve Board, was reconfirmed in May 2023 to a term through 2038. In August 2025, Federal Housing Finance Agency Director Bill Pulte made a criminal referral to the Justice Department alleging mortgage-related issues; President Trump called for her resignation on August 20 and then posted a letter attempting to fire her five days later — the first time a president tried to remove a member of the central bank. Cook's attorneys have denied she committed mortgage fraud.

A federal judge temporarily blocked the firing on September 9, the Justice Department appealed, and the Supreme Court in October allowed Cook to remain on the job pending oral arguments. The Fed asked for a prompt ruling while Cook has continued to participate in meetings, including votes on interest-rate cuts, and her lawyers said she will likely take part in at least one more Federal Open Market Committee before the Court issues a decision. The White House said President Trump "lawfully removed Lisa Cook" and that it looks for "ultimate victory" after oral arguments in January.

Key Topics

Politics, Lisa Cook, Federal Reserve, Supreme Court, Donald Trump, Justice Department