In a landmark 5-4 decision, the US Supreme Court has blocked President Donald Trump’s attempt to fire Lisa Cook, a governor of the Federal Reserve, in a ruling that champions the principle of central bank independence. The justices ruled that the administration had not provided Cook with sufficient “due process” to contest her removal, sending the matter back to lower courts where the White House must now prove allegations of mortgage fraud if it wishes to proceed.
The decision stems from Trump’s August announcement on social media that he was removing Cook, citing claims that she had filed mortgage forms listing two different principal residences simultaneously—a move that typically signals an attempt to secure lower interest rates. Solicitor General John Sauer argued before the court in January that the social media post gave Cook ample notice and opportunity to respond, and that even inadvertent “negligence” could undermine confidence in the Fed. The courts, he said, should defer to the president’s judgment on what constitutes “cause” for removal.
“US Supreme Court blocks Trump's firing of Fed Governor Lisa Cook, ruling lack of due process.”
By law, a president can remove Federal Reserve governors only “for cause,” a requirement designed to insulate the bank from political pressure and safeguard long-term economic policy. Cook’s lawyer, Paul Clement, warned the court that the administration’s handling of the firing would make Congress’ intended protection for the Fed “kind of a joke.” Cook herself has denied the allegations, which Fed defenders argue are a pretext for Trump to assert greater control over the central bank.
Following the ruling, Cook issued a statement declaring the case was “never about mortgage documents.” She called the accusations a “manufactured pretext” because she refused to bow to political pressure on interest rates. “The central bank must make policy decisions guided by independent judgement, free from political interference,” she said.
Yet the Supreme Court’s shield for the Fed came with a parallel blow to other independent regulators. In a separate 6-3 decision written by Chief Justice John Roberts, the court ruled that the president can fire members of independent agencies at will, handing a major victory to the Trump administration. That ruling leaves bodies like the Federal Trade Commission far more vulnerable to shifts in administration priorities, effectively overturning a 90-year-old legal precedent known as Humphrey’s executor.