Supreme Court blocks Trump bid to remove Fed Governor Lisa Cook for now
A 5-4 ruling keeps Lisa Cook on the Federal Reserve Board while her lawsuit proceeds, leaving unresolved whether President Donald Trump can ultimately fire a Fed governor under the Federal Reserve Act’s "for cause" standard.
The U.S. Supreme Court ruled 5-4 that President Donald Trump cannot remove Federal Reserve Governor Lisa Cook for now, leaving her on the Board of Governors while her lawsuit over her dismissal continues. The justices rejected Trump’s request to pause a lower court order blocking her termination but did not decide whether he ultimately has authority to fire Cook or any other Fed governor. Trump had sought to remove Cook over mortgage fraud allegations she denies, allegations raised last summer by FHFA Director Bill Pulte. Cook and others have argued the effort was instead tied to her refusal to support the interest rate cuts Trump had demanded from the Fed, making the case a closely watched test of presidential removal power and central bank independence.
- Federal Reserve Act: U.S. law governing the central bank, including the rule that a president may remove a Federal Reserve governor only "for cause."
- central bank independence: The principle that monetary policymakers should be insulated from direct political pressure, especially in decisions on interest rates and financial stability.
- Board of Governors: The Federal Reserve’s top policymaking board, whose members help set U.S. monetary policy and oversee the central bank system.