Supreme Court Blocks President Trump's Bid To Fire Federal Reserve Governor Lisa Cook
The United States Supreme Court has rejected President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook from office, dealing a setback to the administration’s efforts to assert greater presidential control over the US central bank.
However, the court ruled that the president may proceed with removing members of other independent federal agencies, including the Federal Trade Commission, in a decision expected to have far-reaching implications for the balance of power between the White House and independent regulatory bodies.
The latest ruling follows a legal battle that began in 2025 after Trump sought to dismiss Cook, becoming the first US president since the Federal Reserve’s establishment in 1913 to attempt to remove a sitting Fed governor.
In September 2025, SaharaReporters reported that the United States Court of Appeals for the District of Columbia Circuit blocked Trump’s attempt to fire Cook.
The appellate court’s decision meant the administration had only hours to appeal to the US Supreme Court if it hoped to prevent Cook from participating in a Federal Reserve policy meeting, according to Reuters.
The appeals court ruled 2-1 in Cook’s favour, with Circuit Judges Bradley Garcia and J. Michelle Childs, both appointed by former President Joe Biden, forming the majority, while Circuit Judge Gregory Katsas, a Trump appointee, dissented.
In the majority opinion, Garcia wrote that Cook was likely to succeed in her argument that her constitutional rights had been violated.
“Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her,” Garcia noted.
Trump had alleged that Cook committed mortgage fraud before assuming office, an allegation she has consistently denied.
US District Judge Jia Cobb had earlier ruled on September 9 that those allegations did not constitute sufficient legal grounds for her removal under the statute establishing the Federal Reserve.
The Federal Reserve asked the courts for a swift resolution of the dispute, stating that it would comply with whatever decision the judiciary ultimately reached.
Cook, the first Black woman to serve as a governor of the Federal Reserve, filed a lawsuit against both Trump and the Federal Reserve in late August, arguing that the allegations against her neither provided the president with legal authority to dismiss her nor represented anything more than a pretext to remove her because of her monetary policy views.
The Trump administration, however, maintained that the president possesses broad discretion to determine when it is necessary to remove a Federal Reserve governor and argued that courts should not have the authority to review such decisions.
The legal dispute attracted widespread attention because of its potential impact on the Federal Reserve’s independence in setting monetary policy.
Analysts have long argued that insulating the central bank from political interference is essential to enabling it to make decisions on interest rates and inflation based on economic conditions rather than political considerations.
Throughout the year, Trump repeatedly urged the Federal Reserve to cut interest rates aggressively, while publicly criticising Federal Reserve Chair Jerome Powell over the bank’s monetary policy.
The Federal Reserve, prioritising its efforts to contain inflation, declined to make the reductions sought by the president, although it was widely expected at the time to implement a rate cut later in the week.
The Supreme Court’s latest ruling preserves Cook’s position on the Federal Reserve Board while simultaneously allowing the president greater authority over officials serving on other independent federal boards, including the Federal Trade Commission.