Supreme Court blocks Trump's firing of Fed Governor Lisa Cook, citing due process violations
The US Supreme Court ruled 5-4 that President Trump cannot immediately fire Federal Reserve Governor Lisa Cook, citing a lack of due process. The decision temporarily preserves Cook's seat on the Fed board while lower courts hear her challenge.
The ruling
The US Supreme Court on Monday blocked President Donald Trump's attempt to immediately fire Federal Reserve Governor Lisa Cook. The 5-4 decision, with two conservative justices joining the majority, found that Cook was denied procedural protections before Trump announced her dismissal in August 2025. Chief Justice John Roberts wrote that Fed governors serve staggered 14-year terms and are removable only for cause.
The governors of the Federal Reserve are not subject to the president's pleasure; instead they hold office for staggered 14-year terms and may be removed only for cause.
The ruling does not end the case; lower courts will continue to hear Cook's challenge. A federal judge had previously issued a temporary injunction blocking the firing, citing the public interest in Fed independence. The Supreme Court had signaled skepticism during oral arguments in January, and financial markets had closely watched the outcome given the importance of central bank autonomy.
- Trump announces Cook's firing via Truth Social, alleging mortgage fraud
- Supreme Court hears oral arguments, expresses skepticism
- Supreme Court rules 5-4 to block the firing, citing due process
Trump's allegations and Cook's response
Trump announced Cook's firing on his Truth Social platform, alleging she made false statements on mortgage documents. Cook denied the allegations, arguing through her lawyers that any inaccuracies would have occurred years before her Fed appointment and were unrelated to her official duties. She called the mortgage fraud claim a "manufactured pretext" to remove her because she resisted political pressure on interest rates.
It was never about mortgage documents signed years before my appointment to the Federal Reserve. It was an attempt to push me out under a manufactured pretext because I refused to yield to political pressure and continued to set interest rates solely based on what best serves the American people.
Cook's term on the Board of Governors runs until 2038. The case marks the first time a US president has tried to fire a sitting Fed board member.
Broader implications for Fed independence
The ruling reinforces the Fed's statutory independence, a principle that former Chair Jerome Powell called perhaps the most important legal issue in the central bank's 113-year history. Trump has repeatedly attacked the Fed for keeping interest rates too high, publicly insulting Powell and demanding rate cuts. Powell's term ended in May 2026; Trump nominated Kevin Warsh as his successor.
This is perhaps the most important legal case in the history of the 113-year-old central bank.
The Supreme Court's decision, however, was not a blanket victory for agency independence. In a separate ruling the same day, the justices held that the president may fire heads of other independent agencies for cause, overturning a 90-year-old precedent. That case involved Trump's removal of FTC Commissioner Rebecca Slaughter.
Other Supreme Court decisions
Beyond the Cook case, the Court also denied Trump's bid to appeal the civil judgment against him in the E. Jean Carroll sexual abuse case. The dual setbacks underscored a day of legal defeats for the president, even as the Court expanded his removal power over some agency officials.
