Supreme Court blocks Trump from firing Fed governor Lisa Cook, while allowing removal of FTC commissioner
The US Supreme Court on Monday blocked President Donald Trump's attempted removal of Federal Reserve Governor Lisa Cook, affirming the central bank's independence, but in a separate ruling cleared the way for him to fire FTC commissioners without cause.
The Cook ruling
The US Supreme Court, in a 5-4 decision, ruled that President Trump could not remove Lisa Cook from her position as a governor of the Federal Reserve. The majority opinion, written by Chief Justice John Roberts, stated that Congress limited the president's power to remove Fed governors for "good reason" in order to preserve the central bank's independence.
Allowing the President to remove a member of the Federal Reserve at any time, for any reason, without any notice before, and without any judicial check after would open the door.
The ruling quashes the first attempt by any US president to fire a Fed governor. Trump had moved to dismiss Cook in August 2025, alleging she committed fraud when applying for a mortgage loan. A district court blocked the removal in September 2025, and Cook filed suit.
- President Trump fires Fed Governor Lisa Cook, citing mortgage document fraud.
- A federal district court issues a preliminary injunction blocking the removal.
- Supreme Court rules 5-4 that Cook cannot be removed without cause.
Cook, who was nominated by President Joe Biden in 2022 and is the first Black woman to serve on the Fed's Board, welcomed the decision. She said it "recognizes that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment."
The FTC ruling
In a separate, 6-3 decision, the Supreme Court allowed Trump to fire Federal Trade Commission member Rebecca Slaughter without cause. Slaughter, a Democratic appointee, was dismissed by Trump soon after he began his second term in January 2025.
He did not identify a cause under the statute. He instead told them their continued service on the FTC was inconsistent with his Administration's priorities.
The ruling expands presidential authority over independent regulatory agencies. The court effectively overturned lower-court judgments that had reinstated Slaughter, finding that the president may remove FTC commissioners at will.
- Trump fires FTC Commissioners Rebecca Slaughter and Alvaro Bedoya, citing inconsistency with administration priorities.
- Supreme Court rules 6-3 that the president may remove Slaughter without cause.
Broader implications
The pair of rulings highlight a tense balance over the scope of presidential power. While the Fed decision reaffirmed long-standing protections for the central bank, the FTC decision hands the White House greater control over other independent agencies. The court also declined to hear arguments related to mail-in voting deadlines in a separate decision, and a ruling on birthright citizenship is still pending. A federal criminal probe into former Fed chair Jay Powell was dropped in April, a move many viewed as an attempt by the administration to pressure the central bank on interest rates.
