Fed Reserve governor Lisa Cook warns of 'chaos and disruption' if Trump fires her

WASHINGTON − The Supreme Court would risk “chaos and disruption” if it lets President Donald Trump fire Lisa Cook from the Federal Reserve board, Cook’s lawyers told the Supreme Court on Sept. 25.

That would “sound the death knell for the central-bank independence that has helped make the United States’ economy the strongest in the world,” her lawyers wrote in a response to Trump’s emergency request that is pending before the court.

Her filing was backed by 18 former Federal Reserve officials, Treasury secretaries and other top economic officials who served under presidents from both parties.

The president has asked the court to lift a judge’s ruling that Cook can’t be removed while she challenges Trump’s effort to fire her.

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Trump is probing the limits of his executive power, including over agencies designed to be insulated from political influence.

In May, the Supreme Court said Trump could fire without cause members of two such agencies that deal with labor issues.

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But the majority also notably said the Federal Reserve is different from the National Labor Relations Board and the Merit Systems Protection Board.

The court called the central bank a “uniquely structured, quasi-private entity,” signaling the justices would likely uphold the constitutionality of the bank’s for-cause removal protections.

Trump, however, argues he has sufficient justification. Trump said he fired Cook in August for allegedly making false statements on mortgage applications before she began her 14-year term in 2023.

Cook’s lawyers said Trump’s “flimsy, unproven allegations of pre-office wrongdoing” conveniently followed the president’s criticism of the Federal Reserve board’s policy decisions.

“The President purported to remove Governor Cook only after repeatedly criticizing her and her colleagues for failing to make monetary-policy choices that would prioritize short-term growth over long-term stability,” they wrote.

Her lawyers also said Cook is entitled to be officially notified of why the president wants to remove her and must be given a hearing through a process that courts can review.

“The bottom line is this: Contrary to the President’s boundless assertion of authority, there must be some meaningful check on the President’s ability to remove Governor Cook,” they wrote.

This story has been updated to add new information.

This article originally appeared on USA TODAY: Fed governor Cook asks Supreme Court to block Trump from firing her