The Supreme Court on Wednesday signaled that it is unlikely to allow President Trump to immediately remove Federal Reserve Governor Lisa Cook, and judges across the ideological spectrum warned that such a move could shatter the central bank’s longstanding independence.
Summary
- During about two hours of argument, key justices questioned whether Trump’s unproven allegation that Cook engaged in mortgage fraud before joining the Federal Reserve rose to the level of “cause” required by law to fire a Fed governor.
- The case has become a flashpoint in a broader clash over presidential power and monetary policy.
- The dispute comes as the administration has stepped up attacks on the central bank, including a Justice Department investigation into Federal Reserve Chairman Jerome Powell.
According to The New York Times, the discussion lasted approximately two hours. During the back-and-forth, key judges questioned whether Trump’s unproven allegation that Cook engaged in mortgage fraud before joining the Fed met the level of “cause” required by law to fire a Fed governor.
Several suggested the case was premature, citing unresolved factual disputes and concerns that Cook had not been given adequate notice or an opportunity to respond. A ruling allowing him to remain in office for now would effectively freeze Trump’s efforts to reform the Federal Reserve.
The case has become a flashpoint in a broader clash over presidential power and monetary policy. While the court’s conservative majority has recently allowed Trump to remove leaders of other independent agencies, the justices appeared cautious about extending that logic to the Federal Reserve, which Congress deliberately insulated from politics to protect interest rate setting and financial stability.
Justices Brett Kavanaugh and Amy Coney Barrett warned that accepting Trump’s position It could open the door for presidents to fire Fed officials “at will,” undermining confidence in the U.S. economy.
The dispute comes as the administration has stepped up attacks on the central bank, including a Justice Department investigation to Federal Reserve Chairman Jerome Powell, whom Trump has repeatedly criticized for his interest rates.
Lower courts have already sided with Cook and determined that alleged private conduct before his appointment cannot justify dismissal. The Supreme Court is expected to rule in the coming weeks or months, a decision that could define how far presidents can go to exert control over the country’s most powerful economic institution.
