The U.S. Supreme Court blocked President Donald Trump on Wednesday from firing Democratic Federal Reserve Governor Lisa Cook, allowing her to remain in her seat until oral arguments begin in January 2026. This decision follows months of the Court recognizing the Federal Reserve as a “uniquely structured” entity with a “distinct historical tradition” that insulates it from presidential politics, even though Trump has removed leaders from other agencies like the Federal Trade Commission.

In late August, Trump fired Cook following allegations from a staff member that she committed mortgage fraud by misrepresenting multiple properties as her primary residence to secure better loan terms. Federal housing regulators have since issued criminal referrals related to discrepancies in her property filings.

Bill Pulte, head of the U.S. Federal Housing Agency, alleged Cook falsely described a Cambridge, Massachusetts condo as a “second home” on a mortgage application but later listed it as an investment property on an ethics form. Pulte also claimed Cook repeatedly misrepresented her primary residence across three properties in Cambridge, Atlanta, and Ann Arbor, which could have granted her access to more favorable mortgage rates and tax benefits.

Cook admitted to document alterations but blamed clerical errors, a defense legal analyst Elie Honig described as lacking credibility given Cook’s experience. Cook, appointed by President Joe Biden, has filed a lawsuit challenging her removal, naming Trump, the Federal Reserve Board, and Chairman Jerome Powell as defendants.

Trump justified the firing by citing “sufficient cause,” but the Supreme Court’s intervention has stalled the process for now.