The Trump administration has asked the U.S. Supreme Court to allow President Trump, now serving his second term, to remove Federal Reserve Governor Lisa Cook from her position while litigation over her dismissal continues. The request follows a series of lower court rulings that reinstated Cook, finding that her removal likely violated federal law and due process protections.
In an emergency filing, Solicitor General D. John Sauer argued that Cook should not continue to wield influence over U.S. monetary policy amid allegations she misrepresented information on mortgage filings. The administration stressed that the Fed’s central role in the American economy makes it critical that members remain free of ethical concerns.
Cook, appointed in 2022 to a 14-year term by then-President Joe Biden, participated this week in the Federal Open Market Committee meeting that lowered the benchmark interest rate by a quarter point. President Trump has frequently criticized the Fed for not cutting rates more aggressively.
A Historic Clash Over Fed Independence
The president Trump’s attempt to dismiss Cook marks the first effort in the Federal Reserve’s 112-year history to remove a sitting governor. Trump announced Cook’s firing last month, citing allegations that she falsely claimed two different properties as her primary residence on mortgage filings to secure favorable terms. Cook denies any wrongdoing and has not been charged with a crime.
The move has stirred debate about the independence of the central bank. Critics argue that allowing presidents to dismiss Fed governors at will would undermine the institution’s credibility and politicize monetary policy. Cook’s lawsuit contends her removal violates the Federal Reserve Act, which allows dismissals only “for cause,” and that she was denied adequate due process.
U.S. District Judge Jia Cobb sided with Cook earlier this month, ordering her reinstatement. The D.C. Circuit Court of Appeals upheld that decision, with Judge Bradley Garcia noting that Cook’s due process rights were likely violated.
Trump Administration Legal Arguments Before the Justices
In its Supreme Court filing, the administration asserted that Cook had been notified of the allegations and given time to respond before her removal, but chose not to contest the charges. Sauer wrote that concerns about mortgage fraud—regardless of whether it predates Cook’s appointment—were sufficient grounds for dismissal.
The Trump administration emphasized it was not challenging the constitutionality of the Fed’s removal protections but rather insisting that Cook’s alleged misconduct fell within the definition of “cause.” Her lawyers, however, argue that documents describing one of the properties as a “vacation home” undermine the administration’s claims of fraud.
The Supreme Court’s decision will not only determine Cook’s fate but could also set a significant precedent for the balance of power between the presidency and the Federal Reserve.
