{"id":3263,"date":"2026-06-29T14:38:46","date_gmt":"2026-06-29T14:38:46","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=3263"},"modified":"2026-06-29T14:38:46","modified_gmt":"2026-06-29T14:38:46","slug":"us-supreme-court-rejects-trumps-unprecedented-bid-to-fire-feds-cook","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=3263","title":{"rendered":"US Supreme Court rejects Trump&#8217;s unprecedented bid to fire Fed&#8217;s Cook"},"content":{"rendered":"<div>\n<div>\n<div>\n<ul>\n<li>Summary<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<\/div>\n<div>WASHINGTON, June 29 (Reuters) &#8211; The U.S. Supreme Court refused on Monday to let Donald Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank&#8217;s cherished independence against an unprecedented challenge by the Republican president.<\/div>\n<div>The court, in a 5-4 ruling, blocked Trump&#8217;s bid to become the first president to remove a Fed official since Congress created the central bank in 1913. In his second term as president, \u200bTrump has tested the limits of presidential power in numerous other ways as well.<\/div>\n<div>Conservative Chief Justice John Roberts and fellow conservative Justice Brett Kavanaugh were in the majority, along with the court&#8217;s three liberal justices. Conservative Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Amy Coney \u200cBarrett dissented.<\/div>\n<div>The ruling follows the February 20 decision by the justices in another case with major economic ramifications to strike down most of Trump&#8217;s sweeping global tariffs, a ruling that elicited a vitriolic condemnation of the court by the president.<\/div>\n<div>Roberts, who authored the ruling, said Trump &#8220;failed to afford Cook the procedural protections to which she was entitled by statute. Without such protections, she could not properly dispute the charges the president laid against her.&#8221;<\/div>\n<div>The Federal Reserve&#8217;s governors &#8220;do not serve at the president\u2019s pleasure &#8211; they instead serve staggered 14 year terms, and may be removed only &#8216;for cause,'&#8221; Roberts added.<\/div>\n<div>Trump last August had cited unproven mortgage fraud allegations in trying to oust Cook, the first Black woman to serve as a Fed governor, while she called that a pretext to remove her for monetary \u200bpolicy differences.<\/div>\n<div>The justices denied a request from Trump&#8217;s Justice Department to lift a judge&#8217;s order barring him from immediately firing Cook while her legal challenge to the termination continues to play out. Cook denied Trump&#8217;s allegations.<\/div>\n<div>The Fed is the world&#8217;s most important central bank, an institution that determines the cost \u200bof credit for the United States and beyond and which has been in Trump&#8217;s crosshairs since his return to the presidency in January 2025.<\/div>\n<div>Cook&#8217;s term in the job was due to run until 2038. She was appointed by Democratic former President \u2060Joe Biden in 2022.<\/div>\n<div>Trump&#8217;s targeting of Cook and a separate criminal investigation his administration launched in January, but later dropped, against then-Fed Chair Jerome Powell together represented the biggest challenge to the central bank&#8217;s independence since its founding.<\/div>\n<div>May 15 was the final day of Powell&#8217;s eight years as Fed chair, though he remains a member of \u200bits Board of Governors. The U.S. Senate on May 13 voted to confirm Trump&#8217;s nominee Kevin Warsh as Powell&#8217;s successor, and he was sworn in on May 22.<\/div>\n<div>When the justices in October<svg><\/svg><span>, opens new tab<\/span> agreed to hear the case involving Cook, they left her in the post for the time being. The Supreme Court heard arguments in the case in January, with Cook \u200band Powell in attendance.<\/div>\n<h2>THE FEDERAL RESERVE ACT<\/h2>\n<div>In creating the Fed in 1913, Congress passed a law called the Federal Reserve Act that included provisions to shield the central bank from political interference, requiring governors to be removed by a president only &#8220;for cause,&#8221; though the law does not define the term nor establish procedures for removal.<\/div>\n<div>Trump sought to fire Cook on August 25, 2025, by posting a termination letter on social media citing the allegations disclosed by Federal Housing Finance Agency Director Bill Pulte, a Trump appointee, involving homes owned by her in Ann Arbor, Michigan, and Atlanta.<\/div>\n<div>Pulte wrote on social media on Monday, &#8220;As I have repeatedly said, I believe Lisa Cook will be indicted for mortgage fraud.&#8221;<\/div>\n<div>U.S. District Judge Jia Cobb in September ruled that Trump&#8217;s attempt to remove Cook \u200bwithout notice or a hearing likely violated her right to due process under the U.S. Constitution&#8217;s Fifth Amendment. The judge also said the allegations made against Cook likely were not a legally sufficient cause to remove her under the Federal Reserve Act as they relate to conduct that occurred before she served in the post.<\/div>\n<div>The U.S. Court \u200bof Appeals for the District of Columbia Circuit declined Trump&#8217;s request to put Cobb&#8217;s order on hold.<\/div>\n<h2>THE WISHES OF POLITICIANS<\/h2>\n<div>Trump has heaped pressure on the central bank to cut interest rates more rapidly and more deeply than it has been willing to do as it combats persistent inflation, and lashed out repeatedly at Powell for not complying with his wishes.<\/div>\n<div>The Cook case \u200chas ramifications for the \u2060Fed&#8217;s ability to set interest rates without regard to the wishes of politicians, widely seen as critical to any central bank&#8217;s ability to carry out tasks such as keeping inflation under control.<\/div>\n<div>As a Fed governor, Cook helps set U.S. monetary policy with the rest of the central bank&#8217;s seven-member board and the heads of the 12 regional Fed banks.<\/div>\n<div>In prior cases, the Supreme Court chipped away at the independence of various federal agencies from presidential control, and could soon overrule a key precedent that has shielded the heads of independent agencies from removal since 1935.<\/div>\n<div>But the court last year signaled it may view the central bank as an exception, noting in a May 2025 ruling that let Trump remove two Democratic members of federal labor boards that the Fed possesses a unique structure and historical tradition.<\/div>\n<h2>PRESIDENTIAL POWER<\/h2>\n<div>Both Cook&#8217;s case and the fight over tariffs involved the legal fallout from Trump aggressively pushing the limits of presidential power since returning to office in January 2025.<\/div>\n<div>Trump has also used executive authority to quickly transform policies on immigration, \u200bmilitary service, federal employment and beyond. To date, the Supreme Court has allowed \u200bmost of those policies to go ahead despite legal challenges, on a \u2060preliminary basis, though the tariffs decision was a major exception.<\/div>\n<div>In the tariffs ruling, the court repudiated a signature piece of Trump&#8217;s economic agenda by invalidating his tariffs imposed on nearly every U.S. trading partner under a 1977 law meant for use in national emergencies &#8211; also something no other president had done.<\/div>\n<div>Trump reacted furiously to that ruling, saying he was &#8220;absolutely ashamed&#8221; of some of the justices and called the court&#8217;s Republican appointees &#8211; including two of his own &#8211; who ruled against him &#8220;fools&#8221; and &#8220;lapdogs&#8221; for Democrats.<\/div>\n<div>As in other legal disputes, \u200bthe administration argued for an expansive view of Trump&#8217;s power in Cook&#8217;s case, saying that so long as the president identifies a cause for removal, that is within his &#8220;unreviewable discretion.&#8221;<\/div>\n<div>Cook&#8217;s lawyers argued that granting him that power would eviscerate the \u200bFed&#8217;s independence, disrupt markets and create a roadmap \u2060for future presidents to direct monetary policy.<\/div>\n<h2>THE POWELL INVESTIGATION<\/h2>\n<div>Like Cook, Powell called the administration&#8217;s action against him &#8211; an investigation involving cost overruns in a project to renovate two historical buildings at the Fed&#8217;s Washington headquarters &#8211; a pretext aimed at gaining influence over monetary policy. A judge on March 13 blocked subpoenas issued in the Powell investigation by a prosecutor appointed by Trump, agreeing with Powell that the probe was an improper attempt to intimidate the central bank into cutting interest rates. The prosecutor dropped the investigation on April 24.<\/div>\n<div>Trump has publicly called Powell a &#8220;numbskull,&#8221; a &#8220;major loser&#8221; and &#8220;very incompetent.&#8221;<\/div>\n<div>Trump in January nominated Warsh, who previously served on the Fed&#8217;s Board of Governors and whose father-in-law is wealthy Trump booster Ron Lauder. Supreme Court Justice Clarence \u2060Thomas administered the oath of \u200boffice for Warsh during his swearing-in ceremony, and fellow conservative Justice Brett Kavanaugh was in attendance.<\/div>\n<div>The Justice Department dropped the Powell investigation after Republican Senator Thom Tillis called the inquiry a frivolous assault on \u200bthe Fed&#8217;s independence and vowed to block Warsh&#8217;s confirmation until it was ended.<\/div>\n<div>In what is called a criminal referral, Pulte asked the Justice Department last year to open a criminal investigation into Cook and others over alleged mortgage fraud. There has been no indication of any such criminal investigation moving forward.<\/div>\n<div>As Pulte pushed the accusations, Reuters found that his father and stepmother declared the same status as Cook on two \u200bhomes in two different states. These &#8220;homestead exemptions&#8221; for residences are meant to give a discount to homeowners on taxes for properties they use as their primary residence. The property tax authority in Ann Arbor told Reuters that Cook had not broken rules for tax breaks on her home despite Pulte&#8217;s allegations.<\/div>\n<\/div>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3261\">US Supreme Court rebuffs Trump\u2019s appeal in E. Jean Carroll case<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3259\">Five people shot and killed in northern Germany, two suspects detained<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3257\">U.S. says Trump envoys Kushner and Witkoff will travel for Iran meeting in Doha<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Supreme Court refused on Monday to let Donald Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank&#8217;s cherished independence against an unprecedented challenge by the Republican president.<\/p>\n","protected":false},"author":1,"featured_media":3262,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[80,17,81,87],"class_list":["post-3263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-judiciary","tag-public-policy","tag-supreme-court-of-the-united-states","tag-transactional"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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