Supreme Court takes case, defers action on Fed governor firing

The U.S. Supreme Court agreed Wednesday to take up a case challenging President Donald Trump's attempt to fire a Federal Reserve governor.

In a short order, the nation's highest court deferred action on the application for a stay until oral argument in January 2026.

In a late August social media post, Trump fired Cook, who was appointed by former President Joe Biden. That came after Federal Housing Finance Agency Director William Pulte alleged Cook committed mortgage fraud.

Pulte said Cook owns properties in Georgia and Michigan but had separately listed both as her "primary residence" on different mortgage agreements. A primary residence can mean lower mortgage rates.

Cook sued after Trump posted her dismissal letter to his Truth Social platform. Cook denied wrongdoing and said she could only be fired "for cause."

The high court decision means Cook remains in her position on the Federal Reserve's Board of Governors. Cook could participate in the next two central bank meetings before oral arguments in the case.

Cook's legal team had argued against the stay, which would have allowed Trump to remove Cook.

"Temporarily removing her from her post would threaten our nation's economic stability and raise questions about the Federal Reserve's continued independence – risking shock waves in the financial markets that could not easily be undone," he legal team wrote. "The President's application provides no persuasive ground to take that extraordinary step."

Trump's attorneys said Cook never responded to the charges of mortgage fraud.

"The President notified Cook of the charges against her and waited five days for her to respond before removing her," the president's team wrote. "Having declined to bring any defense to the President’s attention or to dispute any material facts, Cook cannot complain about insufficient process."

The president continues to pressure the Federal Reserve to lower key interest rates. Last month, the central bank did lower key rates by a quarter percent, but Trump said that wasn't enough.

Trump has said the U.S. should have the lowest rates in the world, but the Federal Open Market Committee has taken a more cautious approach.

Earlier this year, the U.S. Supreme Court indicated it might treat the Federal Reserve differently from other independent agencies. The nation's highest court said the president and the Federal Reserve's relationship differed from other independent agencies.

"The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States," the high court wrote in an emergency ruling in May.