Supreme Court Rules Trump Cannot Remove Fed Governor Lisa Cook While Challenge Proceeds

The Supreme Court on Monday ruled 5-4 that President Trump cannot remove Federal Reserve Governor Lisa Cook from office while her lawsuit proceeds. Chief Justice John G. Roberts Jr. wrote the majority opinion, joined by Justice Brett M. Kavanaugh and the court's three liberal justices. The decision upheld a lower-court order barring immediate removal.

In the same set of rulings, the court voted 6-3 to overturn the 1935 precedent Humphrey's Executor v. United States. That decision permits the president to remove members of most independent agencies, including the Federal Trade Commission. The 6-3 ruling upheld Trump's earlier firing of FTC member Rebecca Slaughter.

Roberts wrote that Federal Reserve governors serve staggered 14-year terms and may be removed only for cause. He stated that Trump had not afforded Cook the procedural protections required by statute before attempting to fire her. The court left open whether Trump can remove Cook for cause and noted that she is entitled to notice and an opportunity to respond.

Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett dissented in the Cook case. Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson dissented in the Slaughter case. Justice Brett M. Kavanaugh stated that the Cook decision confirms the longstanding historical practice that Federal Reserve governors enjoy for-cause removal protection consistent with Article II.

President Trump attempted to remove Cook in August via social-media post, citing allegations of mortgage fraud. The allegations concern mortgage applications filed in June and July 2021 for properties in Michigan and Georgia that listed both as primary residences.

Cook has denied any wrongdoing and has not been charged with a crime. She was appointed to the Federal Reserve Board by former President Joe Biden in 2022; her term runs until 2038.

Cook stated that the ruling helps keep the central bank independent and free from political interference. She said: "This was never about mortgage documents signed years before I became a Federal Reserve governor."