Trump was not allowed to fire Lisa Cook from the Fed and gain control over the dollar 0 18

The court announced that hearings on the merits of this case will be held in January. Until the case is heard, Cook will remain in her position and will be able to participate in the upcoming Federal Reserve meetings in October and December, when further decisions on interest rates are expected.

Fox News points out that this unexpected decision comes as the Supreme Court has almost always granted emergency requests from the Trump administration until now.

Trump wants to fire Cook over alleged mortgage fraud that supposedly occurred before her appointment in 2022. He claims she falsified documents to obtain more favorable lending terms.

Cook vehemently denies these accusations and asserts that the real reason for her dismissal is disagreement with her stance on monetary policy.

Cook's lawyers insist that Trump's attempt to fire her several years into her 14-year term is merely a cover for appointing his candidate and securing a majority on the Federal Reserve Board. This means the issue is significant not only for Cook's fate but also for the ability of the U.S. central bank to resist political pressure from the White House.

Among the seven Fed governors, there are already two Trump appointees – Michelle Bowman and Christopher Waller. Additionally, he has nominated his advisor Stephen Miran to replace Adriana Kugler, who resigned in January. Miran is known as a proponent of rate cuts and co-authored a 2024 article calling for limits on the Fed's independence.

If Trump is able to appoint another member, his appointees will gain a majority on the Board. This will give them control over the Fed's budget, personnel decisions, and even the appointment of regional presidents whose terms expire in February.