Supreme Court rejects Trump's bid to fire Federal Reserve Governor Lisa Cook
WASHINGTON, DC: President Donald Trump's effort to immediately remove Federal Reserve Governor Lisa Cook hit a legal roadblock on Monday, June 29, after the Supreme Court ruled that she can remain in her position while challenging her dismissal in court.
In a narrow 5-4 decision, the justices said Cook should be allowed to respond to the allegations against her before any final action is taken.
The ruling marks another major legal chapter in the ongoing dispute between Trump and the Federal Reserve governor while raising fresh questions about the independence of one of the country's most important financial institutions.
Supreme Court says Lisa Cook deserves due process before removal
Chief Justice John Roberts, writing for the majority, said Cook cannot be removed without first having the chance to answer the allegations made against her.
"Only after Cook has had the opportunity to respond to the charges made against her may a final decision be made," Roberts wrote in the court's opinion.
He also warned that allowing a president to remove a Federal Reserve governor without following proper legal procedure would be "corrosive of the independence" of the Federal Reserve.
The decision does not permanently protect Cook's position. Instead, it allows her to remain on the Federal Reserve Board while courts continue to hear her lawsuit challenging Trump's decision to dismiss her.
The ruling stood out because it came on the same day the Supreme Court gave the president larger authority in another case involving the removal of government officials.
In a separate decision involving Federal Trade Commission official Rebecca Slaughter, the court ruled that Trump had the authority to dismiss her and overturned a decades-old legal precedent that had limited presidential firing powers in many independent agencies.
Donald Trump and Lisa Cook remain locked in legal battle
The conflict between Trump and Cook began in August when the president announced on Truth Social that he was removing her from the Federal Reserve Board.
"You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately," Trump wrote in a letter posted online.
He also claimed that allegations of mortgage fraud raised by one of his allies "call into question your competence and trustworthiness as a financial regulator."
Cook challenged the dismissal in court, describing Trump's actions as unlawful.
"This was never about mortgage documents signed years before I became a Federal Reserve governor. It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure," she said after Monday's ruling.
Trump responded soon afterwards, saying his administration "will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!"
Who is Lisa Cook and why does the case matter?
Cook has served on the Federal Reserve Board since May 23, 2022, after being nominated by then-President Joe Biden. She became the first woman of color to serve on the Federal Reserve's Board of Governors.
Her Senate confirmation passed by a 51-50 vote, with then-Vice President Kamala Harris casting the tie-breaking vote.
No Republican senators supported her confirmation, and several Republicans argued at the time that Cook had been "hyper-partisan," citing her social media activity.
Although Monday's ruling keeps Cook in office for now, it does not settle the dispute.
The lawsuit over Trump's attempt to remove her will continue, meaning the courts will ultimately decide whether the president had the legal authority to dismiss a sitting Federal Reserve governor under these circumstances.
