The Supreme Court blocks Trump’s attempt to fire Federal Reserve governor Lisa Cook
The US Supreme Court blocked President Donald Trump’s attempts to fire the head of the US central bank, in a decision that seemed to confirm the independence of the Federal Reserve.
In a 5-4 decision, the state’s highest court justices said the administration did not provide Federal Reserve Governor Lisa Cook with “due process” to challenge her removal.
The ruling sends the matter back to the lower courts, where executives will have to prove their allegations that Cook committed mortgage fraud if they wish to continue the shooting and where Cook will have a chance to rebut the allegations.
Cook has denied the allegations, which defenders of the Fed say are a pretext to allow Trump more control over the bank.
By law, the president can only remove the governors of the Federal Reserve “for cause”.
That requirement was intended to protect the bank from political pressure and to help ensure that it sets policy to achieve long-term economic goals, rather than short-term interests.
Arguing before the court in January, Cook’s lawyer, Paul Clement, said that the administration’s handling of the firing would make Congress’ defense of the Fed “kind of a joke”.
Trump announced his plan to remove Cook from the Fed in August on social media, citing allegations that he submitted loan applications seeking two separate residences at the same time. Banks generally offer low interest rates on mortgages.
Attorney General John Sauer, who represented the White House in the case, told the court in January that social media provided adequate notice and an opportunity to respond.
He said that this issue, even if it was not intentional, is like “recklessness” that could undermine the trust of the Fed and said that the courts should revoke the president’s decision if the cause is found.
After the decision, Cook said in a statement that the case was “never about mortgage letters”.
He called the allegations “made up excuses” because he refused to bow to political pressure on interest rates.
He added that the central bank must make policy decisions guided by “independent judgment, free from political interference”.
While the Supreme Court’s Cook decision shielded the Federal Reserve from immediate interference from the White House, it also issued a separate ruling Monday that weakens the independence of other federal regulators.
In a separate 6-3 decision written by Chief Justice John Roberts, the court ruled that the president can fire members of private organizations at will, handing a major victory to the Trump administration.
The decision leaves bodies like the Federal Trade Commission (FTC) highly vulnerable to changes in administrative priorities, effectively overturning a 90-year-old legal precedent known as the Humphrey Legacy.
That the 1935 decision had protected private organizations by saying that their members could not be removed without just cause.
The lawsuit stems from Trump’s firing of FTC Commissioner Rebecca Slaughter in March 2025 over an email. The Democratic nominee has been fired, outside for being “inconsistent [the] Essentials of management”.
Chief Justice Roberts wrote that, because these commissioners exercise executive power, they must ultimately answer to the president.
