The Trump administration sought to have Lisa Cook removed from her position as governor of the Federal Reserve immediately, but the Supreme Court on Wednesday declined to take action. The high court stated that it would consider arguments about Republican President Donald Trump’s attempt to remove Cook from the Fed board in January in a succinct, unsigned ruling.
The court will decide whether to stay a lower court decision that favors Cook while she fights Trump’s dismissal of her. In an unusual case, Trump did not immediately obtain all of his demands from the justices in an emergency appeal, as evidenced by the high court decision.
Trump’s moves to dismiss members of the boards that oversee other independent federal agencies are the subject of a separate but related legal battle that the justices will hear arguments in December. The case concerns Trump’s authority to fire those officials at will. However, a second question in the case may directly affect Cook’s outcome: can federal judges stop the firings or can they merely impose back pay for officials who were wrongfully fired?
Trump had attempted to fire Cook prior to the Fed’s interest rate-setting committee meeting in September. However, a divided appeals court denied the Trump administration’s emergency appeal, and a judge declared the dismissal unlawful.
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