Lisa Cook Asks Supreme Court to Remain at Fed, Calling Fraud Allegations ‘Flimsy’

In a strongly worded argument, lawyers for Lisa Cook, a member of the Federal Reserve Board, urged the Supreme Court on Thursday to block President Trump’s attempt to immediately remove her from her position. Such a move, they warned, would undermine the independence of the central bank and set a troubling precedent.

The Trump administration has asked the court to grant the president the authority to fire Cook while litigation over the legality of her firing continues. According to Justice Department lawyers, the president has the power to remove Cook “for cause” due to allegations that she engaged in mortgage fraud by signing loan documents before joining the Fed in 2022.

Cook’s legal team vehemently disputed these allegations, calling them “flimsy” and “unproven.” Allowing Trump to remove Cook would, they argued, “eviscerate the independence” of the Fed and “ignore centuries of history, transforming the Federal Reserve into a body subservient to the president’s will.” In a new Supreme Court filing, Cook’s lawyers emphasized that such a move would have far-reaching consequences for the country’s monetary policy.

The case has garnered significant attention from top economic policymakers, who have weighed in on Cook’s side. A group of former Fed chairs and Treasury secretaries, including Alan Greenspan, Ben Bernanke, Janet Yellen, Timothy Geithner, and Henry Paulson, urged the justices to allow Cook to remain on the job while the underlying merits of the case are under review.

In a brief filed with the Supreme Court, the group argued that allowing Trump to remove Cook now would undermine the protections Congress put in place to shield the Fed from political pressures. This, they warned, would “jeopardize the credibility and efficacy of U.S. monetary policy.” The group emphasized that the independence of the Fed is crucial for maintaining the stability of the financial system and ensuring that monetary policy decisions are made based on economic considerations, rather than political motivations.

The Supreme Court’s decision in this case could have significant implications for the balance of power between the executive branch and the Federal Reserve. As the court considers the arguments, Cook’s lawyers remain hopeful that the justices will recognize the importance of maintaining the Fed’s independence and allow her to continue serving on the board.