Supreme Court Blocks Trump's Attempt to Fire Federal Reserve Governor Lisa Cook

The Supreme Court on June 29, 2026 blocked President Trump's unprecedented attempt to fire Federal Reserve Governor Lisa Cook over unproven mortgage fraud allegations, ruling 5-4 that he failed to provide required due process. The decision preserves the Fed's 112-year tradition of independence from presidential removal, with Chief Justice Roberts emphasizing governors serve 14-year terms removable only for cause. Simultaneously, the court ruled 6-3 that Trump can fire heads of most other independent agencies, overturning 1935 precedent and upholding the removal of FTC Commissioner Rebecca Slaughter.

Supreme Court ruling

• ▪Chief Justice John Roberts wrote the majority opinion, joined by Justices Sonia Sotomayor, Elena Kagan, Brett Kavanaugh, and Ketanji Brown Jackson
• ▪The Supreme Court sent the matter back to lower courts, where the Trump administration must prove its allegations if it wishes to proceed with Lisa Cook's firing
• ▪The Supreme Court ruled that Federal Reserve governors serve staggered 14-year terms and may be removed only for cause, not at the president's pleasure
• ▪The Supreme Court ruled that President Trump failed to afford Lisa Cook the procedural protections to which she was entitled by statute before attempting to fire her
• ▪The Supreme Court on June 29, 2026 blocked President Donald Trump's attempt to fire Federal Reserve Governor Lisa Cook in a 5-4 decision

Cook's firing attempt

• ▪Trump cited allegations that Lisa Cook made misrepresentations on mortgage filings related to two properties in Michigan and Georgia before her 2021 nomination to the Federal Reserve
• ▪The allegations against Lisa Cook involved claiming two properties as primary residences in June and July 2021, which can lead to lower mortgage rates and smaller down payments
• ▪President Donald Trump announced his plan to fire Lisa Cook from the Federal Reserve in August 2025 via a social media post on Truth Social
• ▪Lisa Cook was appointed to the Federal Reserve Board of Governors by President Joe Biden in 2022, with a term scheduled to expire in 2038
• ▪Lisa Cook is the first Black woman to serve on the Federal Reserve's Board of Governors

Federal Reserve independence

• ▪The Federal Reserve Act of 1913 gives the president the authority to remove a Fed governor for cause, though the term is not defined in the statute
• ▪Chief Justice John Roberts emphasized that the Federal Reserve follows a distinct historical tradition of central banking protected from political interference dating back to the nation's founding
• ▪The Federal Reserve was created by Congress in 1913 and no president had attempted to remove a Fed official in the central bank's 112-year history before Trump's attempt

Broader executive power context

• ▪The Supreme Court ruled 6-3 on June 29, 2026 that President Trump can fire the heads of most independent agencies, overturning the 1935 precedent Humphrey's Executor v. United States
• ▪The Supreme Court upheld President Trump's firing of Rebecca Slaughter, a Democratic appointee on the Federal Trade Commission, who was removed in March 2025 for being inconsistent with the administration's priorities

Powell investigation

• ▪U.S. Attorney Jeanine Pirro announced in late April 2026 that her office would close the investigation into Jerome Powell
• ▪The Justice Department investigation into Jerome Powell stemmed from testimony he gave about renovations to the Federal Reserve's Washington, D.C. headquarters that went over budget
• ▪A federal judge blocked the Justice Department's subpoenas of Jerome Powell in March 2026 and rejected efforts to revive them in early April 2026
• ▪Jerome Powell's term as Federal Reserve chairman expired in mid-May 2026, and Kevin Warsh replaced him as chair shortly after
• ▪The Justice Department opened a criminal investigation into then-Federal Reserve Chairman Jerome Powell and served the central bank with grand jury subpoenas in late 2025