The Supreme Court has allowed Federal Reserve Gov. Lisa Cook to stay on the board pending oral arguments in January.
SCOTUS did not explain why. However, it means that it has agreed to hear the case.
President Donald Trump fired Cook in August over allegations that she committed mortgage fraud.
Trump cited a criminal referral from August 15, where William J. Pulte, director of the Federal Housing Finance Agency, told Attorney General Pam Bondi he had “sufficient reason to believe” Cook made false statements on one or more mortgage agreements.
“For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year,” wrote Trump. “Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year.”
Cook immediately filed a lawsuit against Trump and Federal Reserve Chairman Jerome Powell.
“The President’s actions violate Governor Cook’s Fifth Amendment due process rights and her statutory right to notice and a hearing under the FRA,” according to the lawsuit. “Accordingly, Governor Cook seeks immediate declaratory and injunctive relief to confirm her status as a member of the Board of Governors, safeguard her and the Board’s congressionally mandated independence, and allow Governor Cook and the Federal Reserve to continue its critical work.”
A 2-1 panel of the D.C. Circuit Court of Appeals denied President Donald Trump a stay, blocking him from firing Federal Reserve Governor Lisa Cook.
“The district court issued its preliminary injunction after finding that Cook is likely to succeed on two of her claims: her substantive, statutory claim that she was removed without ’cause’ in violation of the Federal Reserve Act and her procedural claim that she did not receive sufficient process prior to her removal in violation of the Due Process Clause of the Fifth Amendment,” wrote Judge Brad Garcia. “I agree with the court’s conclusion that Cook’s due process claim is likely to succeed.”
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