The Supreme Court is allowing Federal Reserve Governor Lisa Cook to keep her job — for now.
The court on Wednesday deferred a ruling in a brief order on the Trump administration’s request to fire Cook “for cause” amid allegations of mortgage fraud. The justices have upheld President Donald Trump’s other firings of government officials, but indicated earlier that Cook’s position could be different due to the supposed independence of the Federal Reserve.
The Supreme Court scheduled arguments for January 2026 to adjudicate the case.
BREAKING: Supreme Court *defers* Trump's emergency appeal to fire Lisa Cook from the Fed, announces January 2026 oral argument to fully address the question.
— Steven Mazie (@stevenmazie) October 1, 2025
Which means Lisa Cook STAYS on the Fed for the time being. pic.twitter.com/6I5bNRuB0r
The Trump administration asked the Supreme Court to take up the case in September after a lower court blocked her removal. Judge Jia Cobb ruled that Trump could not fire Cook for “conduct that occurred before she became a Fed governor, nor for claims that do not involve her professional conduct.”
In a dissenting opinion, Judge Gregory Katsas wrote, “The preesident plainly invoked a cause relating to Cook’s conduct, ability, fitness or competence.”
This case could drastically reshape the authority a president has over the Federal Reserve.
Meanwhile, the Justice Department is pursuing a criminal investigation into the allegations against Cook. The agency is focusing on properties she owns in Michigan, Massachusetts, and Georgia. Several reports indicated that Cook is renting out several properties that she listed as primary residences on mortgage applications.
Cook filed a lawsuit after Trump tried to fire her, alleging that she had “been deprived of her Fifth Amendment right to due process, and of her right to process under the Federal Reserve Act.”
The question before the Supreme Court is whether President Trump has the right to remove a credibly accused mortgage fraudster from the Federal Reserve. Lisa Cook had no problem committing mortgage fraud to get lower rates for herself, but she refuses to lower rates for… https://t.co/cfGZrUVtn8 pic.twitter.com/PW8WkdcbCx
— James Fishback (@j_fishback) October 1, 2025
Prosecutions for this type of mortgage fraud are rare — especially among high-profile individuals such as government officials. Cook denies any wrongdoing.