The Supreme Court of the United States has announced it will hear oral arguments in January 2026 regarding a petition by former President Donald Trump seeking to remove Lisa Cook from her position as a Governor of the Federal Reserve Board. Cook will remain in her role until the court’s decision.
This move follows a previous order by the court that broadly permitted the President to remove members of certain independent agencies, a decision which drew criticism from legal experts due to concerns about the potential infringement on the independence of those agencies, designed to operate free from political influence, similar to judicial bodies. The initial ruling, while granting Trump this authority, included a preliminary exception for the Federal Reserve.
Last week, the Supreme Court also temporarily allowed Trump to pursue the removal of Rebecca Slaughter, a Commissioner of the Federal Trade Commission (FTC). A final decision in that case is expected in December and may offer insights into the upcoming deliberation concerning Governor Cook’s status.
The Federal Reserve was intentionally structured to operate independently of the White House and Congress to prevent political interference. This design aims to ensure the Fed prioritizes long-term economic stability and avoids decisions influenced by election cycles. Economists have cautioned that excessive political influence could lead to overly accommodative monetary policy and potentially contribute to inflationary pressures.
