NewsNBC Los Angeles (KNBC) – PoliticsJune 29, 2026United States
Supreme Court Blocks President Trump from Firing Federal Reserve Governor
The U.S. Supreme Court ruled 5-4 that President Trump cannot fire Federal Reserve governor Lisa Cook without cause, upholding the central bank's independence. The decision allows Cook to remain in her position while her legal challenge against the termination continues.
Read the full story at NBC Los Angeles (KNBC) – PoliticsWhy It Matters
This ruling preserves the legal independence of the Federal Reserve, preventing the President from unilaterally replacing board members to influence interest rate policy.
Key Facts
- The Supreme Court ruled 5-4 that the President cannot fire a Federal Reserve governor without cause.
- Lisa Cook will remain in her position while her legal challenge proceeds.
- The majority opinion was written by Chief Justice John Roberts and joined by Justices Kavanaugh, Kagan, Sotomayor, and Jackson.
- Justices Thomas, Alito, Gorsuch, and Barrett dissented.
- The court distinguished between Fed governors, who have 'for-cause' protection, and other agency heads, whom the President may fire at will.
- President Trump alleged Lisa Cook committed mortgage fraud regarding primary residence declarations in 2021; Cook denies these allegations.
- The Federal Reserve Act requires 'for-cause' removal to protect the central bank from political interference.
- No U.S. President has fired a sitting Federal Reserve governor in the institution's 112-year history.
- President Trump has expressed a desire to influence interest rate policy to lower borrowing costs.
- President Trump indicated he intends to continue seeking Cook's removal.
Who's Mentioned
personKetanji Brown Jackson“Supreme Court Justice who joined the majority opinion.”personJerome Powell“Former Federal Reserve chairman.”personDonald Trump“President of the United States who attempted to remove a Fed governor.”personSonia Sotomayor“Supreme Court Justice who joined the majority opinion.”personNeil Gorsuch“Supreme Court Justice who dissented.”personBrett Kavanaugh“Supreme Court Justice who joined the majority opinion.”personClarence Thomas“Supreme Court Justice who dissented.”personKevin Warsh“Current Federal Reserve chairman.”personLisa Cook“Federal Reserve governor who challenged her firing by the President.”personJohn Roberts“Chief Justice who wrote the majority opinion.”personAmy Coney Barrett“Supreme Court Justice who dissented.”personElena Kagan“Supreme Court Justice who joined the majority opinion.”personSamuel Alito“Supreme Court Justice who dissented.”