Supreme Court appears likely to allow Lisa Cook to remain on Fed board [View all]
Source: Washington Post
January 21, 2026 at 12:23 p.m. EST
The Supreme Court on Wednesday appeared likely to block President Donald Trump from firing Democratic-appointed Lisa Cook from the Federal Reserve Board while a lawsuit challenging her removal plays out, a move that would prevent Trump from exerting greater influence over the powerful central bank that guides the economy.
The president has complained loudly for months that the Fed is not dropping interest rates quickly enough. He has tried to oust Cook over mortgage fraud allegations, and his Justice Department has launched a criminal probe of Fed Chair Jerome H. Powell over whether he lied to Congress.
Both Cook and Powell have denied wrongdoing and accused Trump of manufacturing pretexts to undermine the independence of the central bank to achieve his policy goals. The campaign has alarmed many economists, who fear keeping interest rates artificially low could spark long-term inflation.
The Supreme Court’s ruling, which is expected in the coming weeks or months, is one of the most significant tests to date of Trump’s push to expand presidential power and place parts of the government that for decades have operated independently under tighter control. It could also have major ramifications for the economy and is being closely watched by businesses and the markets. In a sign of the stakes, both Powell and Cook attended the arguments.
Read more: https://www.washingtonpost.com/politics/2026/01/21/fed-lisa-cook-supreme-court-trump/
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