The U.S. Supreme Court deferred action on Tuesday on President Donald Trump's request to remove Federal Reserve Governor Lisa Cook from her position, allowing her to remain on the job pending oral arguments in January 2026.
The court's order stated that the application for a stay presented to Chief Justice John Roberts and referred to the full court is "deferred pending oral argument in January 2026." The decision maintains a lower court injunction blocking Cook's removal while litigation continues.
Trump sought to fire Cook on August 25, 2025, citing allegations that she committed mortgage fraud by listing two properties as her primary residence on separate loan applications in 2021, before her Senate confirmation to the Fed Board. Cook denies the allegations and has not been charged with any wrongdoing.
U.S. District Judge Jia Cobb ruled on September 9, 2025, that the claims likely did not constitute sufficient cause for removal under the Federal Reserve Act, which permits dismissal only for misconduct. The U.S. Court of Appeals for the District of Columbia Circuit upheld the injunction on September 16, 2025.
The Justice Department argued in a September 18, 2025, filing that the lower court rulings interfered with the president's removal authority. Solicitor General D. John Sauer wrote that Cook lacks a Fifth Amendment property interest in her role and that due process protections do not apply.
White House spokesman Kush Desai said in a statement, "President Trump lawfully removed Lisa Cook for cause from the Federal Reserve Board of Governors. We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January."
Cook's attorneys, Abbe Lowell and Norm Eisen, said in a statement, "The Court's decision rightly allows Governor Cook to continue in her role on the Federal Reserve Board, and we look forward to further proceedings consistent with the Court's order."
Cook's 14-year term on the seven-member Fed Board is set to expire in 2038. Trump has nominated four potential governors, which would give him a majority if Cook's removal succeeds.
The Justice Department has launched a criminal probe into the mortgage allegations and issued grand jury subpoenas in Georgia and Michigan, according to court documents.
Officials from the White House and Federal Reserve were not immediately available for further comment.