Supreme Court Upholds Federal Reserve Governor Lisa Cook Amid Trump’s Removal Attempt
The U.S. Supreme Court has decided against former President Donald Trump’s efforts to remove Federal Reserve Governor Lisa Cook, who is facing allegations of mortgage fraud. This ruling, made on Monday with a close 5-4 vote, is a notable chapter in the ongoing relationship between the White House and the Federal Reserve.
Chief Justice John Roberts and conservative Justice Brett Kavanaugh sided with three liberal justices, denying Trump’s request. This means Trump won’t become the first president to remove a Federal Reserve official since the organization was founded in 1913. Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett disagreed with the ruling.
In August, Trump aimed to oust Cook due to unverified claims of mortgage fraud, a move critics suggest was an attempt to sway economic policy. Cook countered that the allegations were part of a political strategy intended to pressure her, especially as the Federal Reserve resisted Trump’s demands for quick interest rate cuts.
In his written opinion, Chief Justice Roberts noted that Trump did not give Cook the legal protections she was entitled to. Without these safeguards, Cook couldn’t properly defend herself against the accusations. Roberts emphasized that Federal Reserve governors serve fixed 14-year terms and can only be removed for just cause, in line with the Constitution’s separation of powers.
After the ruling, Cook expressed her gratitude, stating that the decision was crucial for the Federal Reserve’s independence. “This was not about mortgage documents from years ago. It was an attempt to remove me based on a made-up reason because I refused to submit to political pressure,” she said, reaffirming her commitment to serving the American public.
Even with the Supreme Court’s ruling, Trump’s Department of Justice had previously tried to lift a judicial order that stopped him from dismissing Cook while her legal matter was still in progress. Cook’s term, which she began under President Joe Biden in 2022, is set to last until 2038.
The allegations against Cook stem from claims that she incorrectly labeled two properties in Michigan and Georgia as her “primary residences” in mid-2021, before joining the Federal Reserve. Such actions could potentially lower mortgage rates and required down payments.
Solicitor General D. John Sauer criticized Cook, alleging “gross negligence at best” in her applications, claiming it justified Trump’s moves against her. However, Cook has denied any wrongdoing and has not faced any criminal charges.
The Supreme Court had agreed to consider Cook’s case back in October while allowing her to stay in her position. The court heard the case in January, with both Cook and Federal Reserve Chair Jerome Powell in attendance.
In a separate decision on the same day, the Supreme Court also upheld Trump’s firing of Rebecca Slaughter from the Federal Trade Commission, broadening presidential powers over regulatory agencies. This ruling overturned a long-standing precedent from 1935 that had protected certain regulatory officials from being dismissed by the president.
This recent decision on Cook comes on the heels of the Supreme Court’s ruling in February, which struck down a significant portion of Trump’s global tariffs, a move that prompted strong criticism from the former president aimed at the court.
