Supreme Court blocks Trump firing Fed Governor

June 29, US Supreme Court ruled President Donald Trump currently has no power to fire Fed Board of Governors member Lisa Cook.

In ruling, Supreme Court said Cook can keep Fed Board of Governors seat while pursuing lawsuit to dismiss Trump administration allegations. "President denied Cook procedural protections she is entitled to by law. Without protection, she has no chance to challenge allegations President made against her," statement read.

Fed Governor Lisa Cook at Washington meeting, June 2025. Photo: AFP

Fed Governor Lisa Cook at Washington meeting, June 2025. Photo: AFP

Late August 2025, President Trump announced firing Cook, alleging mortgage fraud. Administration claimed she declared properties bought in Michigan and Georgia as "primary residences" to get lower interest rates than if declared second homes or rental properties.

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Days later, Cook sued over decision. September 9, 2025, Washington DC Federal Judge Jia Cobb issued temporary injunction, blocking Trump from executing firing during lawsuit. In response, Trump asked Washington Appeals Court to allow immediate removal, but request was rejected week later.

With June 29 decision, US Supreme Court also rejected Trump request to stay lower court order. Court heard arguments January 21. During hearing, many justices doubted Justice Department lawyers' argument that Trump had legal basis to fire Cook.

Under Federal Reserve Act, President can only remove Fed governor for cause. Trump said he wanted to remove Cook over mortgage fraud allegations. However, she and others argue real reason was her refusal to vote for rate cuts Trump wanted. "This has nothing to do with mortgage papers signed years before I became Fed governor," she said June 29.

Cook was appointed by former President Joe Biden, first Black woman to serve as Fed governor. Commenting on Supreme Court ruling, she said it reinforces principle underpinning economic governance for generations: "Fed must make all policy decisions based on evidence and independent analysis, free from political interference."