How the Supreme Court Blocked Trump’s Plan to Fire Fed Gov. Lisa Cook
Critics argue that President Donald Trump’s unprecedented attempt to remove Federal Reserve Gov. Lisa Cook marks his latest effort to target a Black political figure who disagrees with him. Now, however, the Supreme Court has stepped in, issuing a ruling meant to preserve the central bank’s independence.
The high court handed a legal victory to the first Black woman to serve on the Fed’s Board of Governors in a 5-4 decision, according to Reuters. The justices ruled that Cook can remain in her position while her legal challenge proceeds, marking a complete rejection of Trump’s ongoing effort to give her the boot.
We previously told you, Trump dismissed Cook over allegations of mortgage fraud that she has repeatedly denied. Chief Justice John Roberts joined the court’s three liberal justices and Justice Brett Kavanaugh in the majority.
The ruling leaves the broader legal dispute unresolved, but prevents Cook’s immediate removal.
Related: GOP Beware: The Rise of the Political ‘Black BackLash’
The decision also marks the first time in the Federal Reserve’s 112-year history that any American president has tried to fire a sitting governor, underscoring the high stakes of a case that economists and former central bankers warned could erode the Fed’s political independence.
Critics argued Trump’s attempted removal was yet another example of him targeting Black female political leaders. We also told you all about the several legal cases and public backlash Trump has used against women like former Vice President Kamala Harris, New York Attorney General Letitia James and now Cook.
The governor argued Trump’s attempt to oust her was politically motivated and violated the Federal Reserve Act, which permits governors to be removed only “for cause.” The Supreme Court’s majority emphasized that the protections governing the Fed differ from those applying to several other federal agencies, whose leaders enjoy fewer safeguards from presidential removal.
Other critics say Cook’s case fits a broader pattern where prominent Black officials have faced intense scrutiny or removal efforts. The Trump administration has rejected allegations that race played any role, maintaining that its actions were based on concerns about Cook’s conduct and its interpretation of presidential authority.
The Supreme Court did not address those broader claims, focusing instead on the legal protections Congress established for Federal Reserve governors.
The ruling came on the heels of the court dramatically expanding presidential authority in a separate case, Trump v. Slaughter. The justices validated Trump’s attempt to fire Rebecca Slaughter, a Democratic member of the Federal Trade Commission. The decision overturned a 91-year-old precedent that had shielded leaders of many independent agencies from removal without cause, according to CBS News.
Cook, an economist nominated by former President Joe Biden in 2022, has become one of the administration’s most prominent legal adversaries. Before joining the Fed, she was widely known for her research on economic growth, innovation and the long-term effects of racial violence on economic development.
As the first Black woman to serve as a Federal Reserve governor, her appointment was widely viewed as a historic milestone. The case now returns to the lower courts, where Cook’s lawsuit challenging Trump’s attempted dismissal will continue.
