Who Is Lisa Cook? Career, Controversy With Donald Trump, Supreme Court Ruling, Joe Biden Connection And More

The US Supreme Court on Wednesday, in a significant setback to President Donald Trump, blocked an immediate effort by his administration to remove Lisa Cook from her position as a Federal Reserve governor. In a brief, unsigned order reported by the Associated Press, the Supreme Court deferred hearing arguments until January. At that time, the court will decide whether to intervene in a lower court ruling that allowed Cook to remain in her role.

“The order is a rare instance of President Trump not quickly securing the justices’ support in an emergency appeal,” the AP noted.

Legal Battle Over Fed Seat Continues

The Trump administration had sought to oust Cook before the September meeting of the Fed’s interest rate-setting committee. However, a judge ruled the attempted firing illegal, and a divided appeals court rejected the administration’s emergency appeal.

Following the Fed meeting, which concluded with a quarter-percentage-point reduction in a key interest rate, the administration filed a new emergency appeal with the Supreme Court.

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Allegations Against Lisa Cook

Cook, appointed to the Fed board by Democratic President Joe Biden, has vowed to remain in her role. “I will not be bullied,” she said. Her attorney, Abbe Lowell, added, “She will continue to carry out her sworn duties as a Senate-confirmed Board Governor.”

The Trump administration has accused Cook of mortgage fraud, alleging she claimed two properties, in Michigan and Georgia, as “primary residences” in mid-2021, before joining the Fed board. Such claims could reduce mortgage rates and down payments compared with declaring a property as a second home or rental.

In a Supreme Court filing, Solicitor General D. John Sauer wrote, “Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself – and refuses to explain the apparent misrepresentations.”

Cook has denied any wrongdoing and has not been charged with a crime. According to AP reporting, documents indicate her Atlanta condo was listed as a “vacation home” on a May 2021 loan estimate, and as a “2nd home” on a security clearance form, undermining the administration’s fraud claims.

Who Is Lisa Cook?

Before joining the Federal Reserve, Cook spent nearly 20 years as a professor of economics and international relations at Michigan State University, focusing on racial disparities, innovation, and financial crises. She also served as a senior economist at the Council of Economic Advisers during the Obama administration.

Cook’s confirmation process in 2022 was contentious, with Republicans questioning her qualifications. Sen. Pat Toomey described her as “grossly unqualified.” Despite opposition, she was confirmed after Vice President Kamala Harris cast the tie-breaking vote.

Since her appointment, Cook has commented on the economic impact of artificial intelligence and supported Chair Jerome Powell’s monetary policies, including the aggressive interest rate hikes of 2022. In August, she described weak job growth as “concerning” and warned the labor market could be at a turning point ahead of the Fed’s September meeting.

Cook was the first Spelman College student to win a Marshall Scholarship, later earning a second bachelor’s degree from Oxford University and a PhD in economics from UC Berkeley. Born in 1964 in Georgia, she grew up in a civil rights-active family. Her uncle, Samuel DuBois Cook, became the first Black professor at Duke University and was a classmate of Martin Luther King Jr.

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