Federal Reserve Director Lisa Cook Was ‘Immediately Dismissed’ by Trump, but U.S. Supreme Court Holds Verbal Arguments in January Next Year to Go Through Deliberation Procedures

U.S. President Donald Trump and Fed Director Lisa Cook [AFP Yonhap News] 사진 확대

U.S. President Donald Trump and Fed Director Lisa Cook [AFP Yonhap News]

Lisa Cook, director of the Federal Reserve System (Fed), who decided to dismiss U.S. President Donald Trump, is expected to avoid immediate dismissal and remain in office for the time being according to the Supreme Court’s decision.

According to foreign media such as the Financial Times (FT), AP, and Reuters on the 1st (local time), the U.S. Supreme Court said it has set a deadline for oral arguments in January next year in response to the administration’s demand for the dismissal of Fed director Lisa Cook. With the Supreme Court entering the deliberation process without making an immediate decision on whether to dismiss Cook, Cook is expected to be able to serve as a Fed director at least until January next year.

President Trump has called for Cook to step down, pointing to the controversy. In August, Trump notified Cook, who was appointed during the previous Biden administration, of his dismissal, alleging mortgage fraud. Although President Trump cited allegations of misconduct as a reason, some pointed out that it was a personnel decision to pressure the Fed, which values independence.

The U.S. judiciary seems to be putting the brakes on Trump’s decision. In response to Cook’s objection, the first trial court on the 9th of last month judged that the fraud charges, which President Trump revealed as the reason for his dismissal, were not sufficient grounds for dismissal because they occurred before Cook took over as a Fed director. In addition, the second trial court judged that the Trump administration violated Cook’s legitimate procedural rights by not giving him a chance to formally respond to the charges filed by Cook on the 15th of last month. Then, on the 18th of the same month, the Federal Ministry of Justice demanded that the Supreme Court at least temporarily suspend the effect of the lower court’s decision to keep Cook in office.

The Supreme Court’s decision will address concerns among U.S. economic officials, the FT said. “If Cook is allowed to be fired, it could signal that the president could force other members of the Fed’s policy-making committee to be kicked out.”