The Supreme Court will allow Fed Governor Lisa Cook to remain in her position until oral arguments about whether President Trump has the authority to fire her begin in January 2026. Trump has argued that Cook should be immediately fired over allegations of mortgage fraud.
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“Granting the President’s request for immediate relief to alter the status quo would sound the death knell for the central-bank independence that has helped make the United States’ economy the strongest in the world,” lawyers for Cook said in a filing.
Firing Cook Could Shake Markets, Warns Citadel CEO
Last month, US District Judge Jia Cobb blocked Trump’s request to fire Cook, reasoning that allegations of mortgage fraud do not satisfy the requirements of the Federal Reserve Act clause to remove a sitting Governor “for cause.” The Trump administration appealed the ruling, which was unsuccessful.
Citadel founder and CEO Ken Griffin said in a Wall Street Journal column that allowing Trump to fire Cook would undermine the independence of the Federal Reserve and harm investor confidence. Griffin added that the move could also raise inflation expectations and cause economic disruption.
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