The U.S. Supreme Court decided that Lisa Cook can continue serving as the director of the Fed while her lawsuit against President Donald Trump proceeds.
The lawyers’ oral support phase is planned for January.
The ruling is seen as a defeat for Trump, who has been attempting to remove Cook from the Federal Reserve Board of Governors since the start of the year but has been unsuccessful in the federal courts.
Bill Pulte, director of the Federal Housing Financing Agency, initiated the process by alleging that Cook committed fraud by stating multiple properties as primary residences in mortgage applications.
The governor owns real estate in Michigan, Georgia, and Massachusetts.
Trump announced Cook’s resignation based on the charges, but she contested the decision, alleging its illegality.
Trump goes back to the Justice Department to fire Lisa Cook.
The White House strengthened its efforts on Sunday to remove the Federal Reserve director, Lisa Cook, by submitting a document to the Washington Circuit Appeal Court.
The government contends that President Donald Trump’s decision from the Republican Party to remove him from office is justified.
The document aims to revoke the earlier decision that had blocked Cook’s resignation, mentioning that the president has the power to appoint and dismiss directors of the Fed according to the Constitution and existing laws.
The White House also asserts that the director failed to meet specific performance standards and that his exit is essential for the effective implementation of monetary policy.
Lisa Cook challenges the resignation and argues that the decision to remove her lacks legal justification and constitutes unjustified interference in Fed’s autonomy.
Constitutional law experts are closely monitoring the case, as it could greatly affect the independence of the US central bank.
The legal conflict continues in the Court of Appeals, with no option for an instant ruling.
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