Supreme Court keeps Lisa Cook on Fed Board as case proceeds

The Supreme Court on Wednesday declined to immediately allow President Donald Trump to remove Lisa Cook from the Federal Reserve Board of Governors, issuing a brief unsigned order that keeps her in office while the justices prepare to hear arguments in January over the legality of his action. Cook, a governor appointed by President Joe Biden, sued after Trump announced in late August that he would fire her, alleging she had falsified mortgage records before taking office; Cook denies wrongdoing and has not been charged with a crime.

The court’s order leaves in place a September decision by Washington-based U.S. District Judge Jia Cobb that blocked Cook’s removal while her lawsuit proceeds. In that ruling Judge Cobb concluded the 1913 law establishing the Fed permits removal of a governor only for misconduct committed while in office, and found an appearance that Cook was likely denied due process. A divided panel of the U.S. Court of Appeals for the D.C. Circuit last week declined to put Judge Cobb’s order on hold, saying Cook likely was deprived of due process in violation of the Fifth Amendment.

The Justice Department had asked the high court on an emergency basis to lift...