The US Supreme Court has dealt a sharp rebuke to President Donald Trump’s attempt to fire a Federal Reserve governor, ruling 5-4 that the administration failed to provide Lisa Cook with sufficient due process to contest her removal. The decision, handed down on Monday, sends the case back to lower courts, where the White House must prove its allegations that Cook committed mortgage fraud if it wishes to proceed with the firing.
Cook, a Joe Biden appointee whose 14-year term on the Fed board runs until 2038, is the first Black woman to serve on the central bank’s governing body. Trump announced her dismissal on social media in August, claiming she had filed mortgage forms listing two different principal residences simultaneously — a practice that can secure lower interest rates. Cook denied the allegations and sued, arguing the president had fired her without cause.
“US Supreme Court blocks Trump's bid to fire Fed governor Lisa Cook in 5-4 ruling on due process.”
Under US law, a president can remove a Fed governor only “for cause”, a safeguard designed to shield the bank from political pressure and ensure it sets policy for long-term economic goals rather than short‑term interests. Trump’s handling of the firing, Cook’s lawyer Paul Clement told the court in January, would make Congress’ intended protection “kind of a joke”.
In their opinion, the justices said: “The court decides this application on the narrow ground that the president failed to afford Cook the procedural protections to which she was entitled by statute. Without such protections, she could not properly dispute the charges the president laid against her.”
Solicitor General John Sauer, arguing for the White House, had told the court that Trump’s social media post gave Cook sufficient notice and opportunity to respond, and that even inadvertent negligence could undermine confidence in the Fed. He urged the court to defer to the president’s judgment on what amounts to cause.
Following the ruling, Cook said the case was “never about mortgage documents”. She called the allegations a “manufactured pretext” because she refused to bow to political pressure on interest rates, and insisted the central bank must make policy decisions guided by “independent judgement, free from political interference”.
While the Cook ruling shields the Fed from immediate White House interference, the same day the court delivered a separate 6-3 decision written by Chief Justice John Roberts that weakens the independence of other federal regulators. The court ruled that the president can fire members of independent agencies at will, leaving bodies such as the Federal Trade Commission (FTC) far more vulnerable to shifts in administration priorities and overturning a 90-year-old legal precedent. The court also allowed Trump to remove a Democratic-appointed member of the National Labor Relations Board, leaving the union board without a quorum.
The ruling is seen as a major win for the central bank, which has spent the last year under attack from the White House over interest rates. Most Fed officials have broadly ignored demands of loyalty from Trump, who believes rates should be lower.