US Supreme Court blocks Trump's bid to remove Federal Reserve Governor Lisa Cook

Published 29 June 2026 · us

The US Supreme Court on Monday delivered a major ruling on the independence of the Federal Reserve, rejecting President Donald Trump's attempt to remove Federal

The US Supreme Court on Monday delivered a major ruling on the independence of the Federal Reserve, rejecting President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook from office. In a 5-4 decision, the court refused to lift a lower court order that prevents Trump from firing Lisa Cook while her legal challenge continues. The ruling means Cook will remain a member of the Federal Reserve Board of Governors. What did the Supreme Court decide? The Supreme Court denied a request by Trump's Justice Department to immediately remove Cook from the Federal Reserve Board. The decision does not settle the underlying lawsuit but allows a lower court injunction protecting Cook's position to remain in force while the case proceeds. Had Trump prevailed, he would have become the first US president to remove a Federal Reserve governor since Congress established the central bank in 1913.

Why did Trump try to remove Lisa Cook? In August 2025, Trump sought to dismiss Cook, citing allegations of mortgage fraud involving homes she owned in Michigan and Georgia. The allegations were raised by Federal Housing Finance Agency Director Bill Pulte, a Trump appointee. Cook denied any wrongdoing and argued the accusations were merely a pretext to remove her because of disagreements over monetary policy. Why did lower courts block the move? US District Judge Jia Cobb ruled that Trump's attempt to fire Cook likely violated her constitutional due process rights because she was not given notice or an opportunity to respond. The judge also found that the allegations cited by Trump were unlikely to constitute the "for cause" requirement under the Federal Reserve Act because they related to events before Cook joined the Fed.

The US Court of Appeals later refused to suspend that ruling, leading the administration to appeal to the Supreme Court. What does the Federal Reserve Act say? Congress created the Federal Reserve through the Federal Reserve Act of 1913, which was designed to protect the central bank from political pressure. Under the law, Federal Reserve governors can be removed by the President only "for cause." However, the statute does not define what qualifies as "cause," making Cook's case an important legal test of presidential authority. Why is the ruling significant? The decision is widely seen as a victory for the Federal Reserve's independence. The Fed sets US monetary policy, including interest rates, without direct political control. Economists generally argue that an independent central bank is essential to controlling inflation and maintaining financial market confidence.