Supreme Court blocks Trump from firing Federal Reserve board member Lisa Cook while expanding presidential power over other agencies

Jun 29, 2026

The Supreme Court issued split rulings on June 29, 2026, blocking President Donald Trump from immediately firing Federal Reserve Governor Lisa Cook over unproven mortgage fraud allegations while simultaneously overturning the 91-year-old Humphrey's Executor precedent to expand presidential authority to fire heads of other independent agencies without cause. In a 5-4 decision, Chief Justice John Roberts joined three liberal justices and Justice Brett Kavanaugh to protect Cook, the first Black woman Fed governor nominated by President Biden, allowing her to remain while her lawsuit proceeds. The 6-3 conservative majority separately ruled Trump can fire leaders at agencies including the NLRB, Merit Systems Protection Board, and Consumer Product Safety Commission despite federal laws requiring cause. The rulings come amid Trump's broader pressure campaign on the Fed, including a criminal investigation of former chairman Jerome Powell that ended in April 2026, and carry significant implications for financial markets and the independence of agencies regulating labor, product safety, and nuclear energy.

Presidential removal power expansion

▪The Supreme Court ruling on presidential removal power was issued on June 29, 2026.
▪The Supreme Court's June 29, 2026 ruling extends presidential removal power to agencies including the National Labor Relations Board, the Merit Systems Protection Board, and the Consumer Product Safety Commission.
▪The Supreme Court ruled on June 29, 2026 that presidents have free rein to fire agency heads at will, despite federal laws that require a cause for such dismissals.

Lisa Cook Federal Reserve case

▪Chief Justice John Roberts, Justice Brett Kavanaugh, and the three liberal justices formed the 5-4 majority allowing Lisa Cook to remain in her Federal Reserve position.
▪Donald Trump attempted to fire Federal Reserve governor Lisa Cook over allegations of mortgage fraud, which Lisa Cook has denied.
▪Solicitor General D. John Sauer argued in January 2026 that Lisa Cook's mortgage applications are evidence of gross negligence at best and give Donald Trump reason to fire Lisa Cook.
▪Lisa Cook was nominated to the Federal Reserve Board of Governors by President Joe Biden.
▪The allegations against Lisa Cook stem from claims she declared two properties in Michigan and Georgia as primary residences in June and July 2021, before she joined the Federal Reserve board.
▪The Supreme Court voted 5-4 on June 29, 2026 to allow Federal Reserve governor Lisa Cook to stay in her job while she fights President Donald Trump's effort to fire her.
▪Lisa Cook is the first Black woman to be a Federal Reserve governor.

Humphrey's Executor precedent overturned

▪The Humphrey's Executor decision was 91 years old at the time it was overturned on June 29, 2026.
▪The six conservative justices formed the majority in overturning Humphrey's Executor on June 29, 2026.
▪The Supreme Court on June 29, 2026 jettisoned its unanimous decision in Humphrey's Executor that had limited when presidents can fire agencies' board members.

Independent agency board firings

▪Justice Sonia Sotomayor said in a dissent that the Supreme Court's June 29, 2026 ruling could lead to submission, instability, and even oppression.
▪The Supreme Court ruled on June 29, 2026 in the case of former Federal Trade Commission member Rebecca Slaughter, whom Donald Trump fired without cause despite a provision of federal law that requires a reason.

Trump interest rate control attempt

▪A growing chorus of Federal Reserve policymakers is expressing concern about persistently high inflation and suggesting the central bank could raise its benchmark rate by the end of 2026 or leave it unchanged.
▪The Federal Reserve has left its key interest rate unchanged in 2026.
▪Jerome Powell has remained as a Federal Reserve governor after his term as chairman ended in mid-May 2026.
▪Donald Trump threatened to fire former Federal Reserve chairman Jerome Powell if Jerome Powell did not leave the board when his term as chairman ended in mid-May 2026.
▪The Justice Department investigation of Jerome Powell ended in late April 2026.