Federal Reserve Official Lisa Cook Stays in Post After Supreme Court Decision
The US highest court declared on Wednesday that Fed Governor Lisa D. Cook remains to serve for the time being, deferring action on a petition to remove her at once.
Justices to Consider Oral Arguments in January
The nation's top judicial body stated it will consider oral arguments on the case in the month of January.
Earlier in the day, the court considered the president's effort to dismiss Cook – representing the first bid by a US president to terminate a Federal Reserve official.
Temporary Relief for Fed Governor
The justices' decision indicates Cook will remain in her role for now. The judges refused to rule at once on a request to suspend a lower court ruling that temporarily blocks the executive from removing the Biden appointee while legal proceedings proceed in a district court.
1913 Law and Autonomy
When Congress created the Federal Reserve in 1913, it enacted the Federal Reserve Act, which included clauses to shield the central bank from political interference. The law mandates that board members be removed by a president only “for cause”, though the statute does not specify the term nor establish processes for removal. This law has not previously been challenged in the judicial system.
Court Decision on Removal Grounds
US District Judge Jia Cobb, a Washington-based judge, on 9 September decided that allegations Cook engaged in housing loan fraud before taking office were likely insufficient grounds for removal under the existing law.
Context of the Court Case
Cook, the first Black woman to serve as a Federal Reserve board member, filed a lawsuit against the executive in August after he announced he would fire her. Cook has asserted that the claims made at her did not provide the president the lawful power to remove her and were a excuse to terminate her for her economic views.
