The U.S. Supreme Court ruled that MSU professor Lisa Cook can retain her position as governor on the Federal Reserve Board as legal challenges over President Donald Trump's attempt to remove her continue. 

The 5-4 Supreme Court ruling rejected Trump's efforts to remove Cook from the Federal Reserve Board of Governors following allegations of mortgage fraud, which Cook denies. The court did not decide whether Trump ultimately has the legal authority to remove Cook or other Federal Reserve governors.

The case has become a major test of the level of power the president has over Federal Reserve governors and the nation's central bank. If Trump succeeds in removing Cook from the board, it would pave the way for Trump to influence the country's economic policies by having sway over the 12-member committee. 

In a statement to The New York Times, Cook said, “This was never about mortgage documents signed years before I became Federal Reserve governor. It was an attempt to remove me on manufactured pretext because I refuse to bow to political pressure and continue to set interest rates based only on what would best serve the American people.” 

“I am grateful for this decision, not for my own sake but for the sake of the American people, whose economic well-being depends on a central bank that answers to its mission, not political intimidation,” Cook wrote. 

Cook, a tenured professor of economics and international relations within the College of Social Science and James Madison College, is the first Black woman to serve on the Federal Reserve Board. She was appointed to the board by former President Joe Biden and approved by the U.S. Senate in 2022.

Cook was expected to serve a 14-year term on the Federal Reserve Board until 2038, before Trump attempted to fire Cook from her position in August over unproven mortgage fraud allegations that predated her appointment to the board. It was the first time a president fired a governor from the Federal Reserve Board, sparking concerns over maintaining the separation of the independent central bank and the executive branch of government. 

Cook filed a mortgage application that allegedly shows discrepancies between properties listed under Cook's name in Ann Arbor, MI, and Atlanta, GA. Cook has denied the allegations and said Trump targeted her because they disagreed on economic policy.

In a Truth Social post after the ruling, Trump said the court had sent the case back “on a strictly procedural basis” and said, “we will take appropriate action immediately.”