Supreme Court blocks Trump bid to remove Fed Governor Lisa Cook

The court’s refusal to lift a lower judge's order keeps Cook in her position while her broader legal challenge against the termination proceeds. Trump had sought to oust her last August, citing unproven mortgage fraud allegations—claims Cook dismissed as a pretext for removing her due to disagreements over monetary policy. U.S. District Judge Jia Cobb previously determined that the president’s attempt to fire her without a hearing likely violated due process protections under the Fifth Amendment, noting that the accusations lacked sufficient legal grounds for removal under the Federal Reserve Act.

This confrontation represents the most significant challenge to the central bank's autonomy since its 1913 inception. The Fed is specifically designed to operate with a degree of insulation from political pressure to ensure stable economic policy, a structure the Supreme Court signaled last year remains unique among federal agencies. While Trump has aggressively tested the limits of executive power across various domains—from trade tariffs to federal employment—the judiciary has now twice checked his efforts to reshape the economic institution. The administration had argued for unreviewable discretion in such removals, but the court’s majority held firm, effectively shielding the Fed’s board from being purged over policy disputes.