NewsNBC Bay Area — PoliticsJune 29, 2026United States
Supreme Court Blocks President Trump from Firing Federal Reserve Governor Lisa Cook
The U.S. Supreme Court ruled 5-4 that President Trump cannot fire Federal Reserve governor Lisa Cook without cause, maintaining the central bank's independence from political interference. The court allowed Cook to remain in her position while her legal challenge against the termination proceeds.
Read the full story at NBC Bay Area — PoliticsWhy It Matters
This ruling prevents the President from unilaterally removing Federal Reserve governors, ensuring the central bank remains independent in setting interest rates rather than being subject to direct executive control.
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 as a Federal Reserve governor while her legal challenge continues.
- 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 Federal Reserve governors, who have 'for-cause' protection, and other agency heads, whom the President may fire at will.
- President Trump announced his intent to fire Cook in August, citing alleged mortgage fraud regarding primary residence declarations in 2021.
- Cook denies the mortgage fraud allegations and has not been charged with a crime.
- The Federal Reserve Act mandates that governors can only be removed 'for cause' to protect the bank from political interference.
- No president has fired a sitting Federal Reserve governor in the 112-year history of the institution.
- President Trump has expressed a desire to influence interest rate policy to lower borrowing costs for consumers.
- President Trump indicated he may seek further action to remove Cook despite the ruling.
Who's Mentioned
personSamuel Alito“Supreme Court Justice who dissented.”personKetanji Brown Jackson“Supreme Court Justice who joined the majority opinion.”personDonald Trump“President of the United States who attempted to remove Lisa Cook.”personNeil Gorsuch“Supreme Court Justice who dissented.”personBrett Kavanaugh“Supreme Court Justice who joined the majority opinion.”personSonia Sotomayor“Supreme Court Justice who joined the majority opinion.”personLisa Cook“Federal Reserve governor who challenged her firing by President Trump.”personJohn Roberts“Chief Justice of the Supreme Court who wrote the majority opinion.”personAmy Coney Barrett“Supreme Court Justice who dissented.”personElena Kagan“Supreme Court Justice who joined the majority opinion.”personKevin Warsh“Current Federal Reserve chairman.”personJerome Powell“Former Federal Reserve chairman.”personClarence Thomas“Supreme Court Justice who dissented.”