Supreme Court upholds Fed independence, keeps Lisa Cook on board
In brief
- Supreme Court ruled 5-4 that Trump cannot remove Fed Governor Lisa Cook from office
- Decision reinforces Fed independence and 'for cause' removal protections under Federal Reserve Act
- Cook denied mortgage fraud allegations Trump cited as grounds for removal
- First presidential attempt to remove a sitting Fed governor in 112-year history
The case against Cook
Trump moved to fire Cook in August 2025, citing allegations of mortgage fraud. Cook denied the allegations outright, calling them "flimsy" and politically motivated. The attempt marked an unprecedented moment: no sitting president had attempted to dismiss a Federal Reserve governor in the institution's 112-year existence.
A district court issued an injunction in September 2025 keeping Cook in place. An appeals court denied the administration's emergency relief request that same month, and the Supreme Court then denied Trump's emergency request in October 2025. Oral arguments were finally heard in January 2026.
The Court's reasoning
Chief Justice Roberts authored the majority opinion, emphasizing the Fed's historical significance and the specific removal protections in the Federal Reserve Act. The law says you can only fire a Fed governor for legitimate reasons, not because you disagree with their policy views or want to install someone more sympathetic.
The justices essentially carved out the Fed as a special case, distinct from the broader universe of independent agencies. This matters because the same Court simultaneously expanded executive powers concerning the dismissal of leaders from other independent agencies, including the Federal Trade Commission. The Fed got different treatment.
What comes next
The Court left the door open for future legal proceedings on Cook's specific status. For now, she remains on the board. Cook made history when she was sworn in as the first African American woman on the Fed Board in May 2022. This ruling protects not just her seat, but the principle that monetary policy decisions belong to the Fed, not the White House.
