Supreme Court agrees to hear arguments in case on Federal Reserve independence

The Supreme Court agreed Wednesday to decide whether President Donald Trump can temporarily fire Lisa Cook from the Federal Reserve, setting up a blockbuster showdown over the independence of an agency with vast power over the American economy.

The court said it would hear arguments in the case in January. Cook will remain in the job for now because the court deferred a decision on Trump’s request to remove her immediately.

The high court’s move came months after a majority of justices appeared to draw a line of protection around the Fed, calling the rate-setting agency a “uniquely structured” entity with a “distinct historical tradition” shielding it from presidential politics – even as the court has permitted Trump to fire leaders at other agencies, like the Federal Trade Commission.

Trump fired Cook in late August after a member of his administration alleged that she had committed mortgage fraud by reporting two different homes as her primary residence – a practice that can yield better loan terms. Other documents have subsequently revealed that Cook sometimes declared the second property as a “vacation home.” Cook has called those charges “manufactured” and argued that no court has reviewed them.

This story is breaking and will be updated.