US Supreme Court Blocks President's Bid to Fire Federal Reserve Governor Cook

The U.S. Supreme Court, by a 5-4 vote on Monday (June 29, 2026), rejected President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, upholding the central bank's independence from political interference. The ruling marks the first time a court has prevented a president from firing a Fed official since the central bank's creation in 1913.

Chief Justice John Roberts, writing for the majority, stated that President Trump 'failed to afford Cook the procedural protections to which she was entitled by statute.' The opinion emphasized that Federal Reserve governors 'do not serve at the president's pleasure' but instead hold staggered 14-year terms and may be removed only 'for cause.'

The majority included Chief Justice Roberts, Justice Brett Kavanaugh, and the court's three liberal justices. Dissenting were Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett.

President Trump had sought to oust Governor Cook in August 2025, citing unproven allegations of mortgage fraud. Governor Cook, the first Black woman to serve on the Fed's Board, argued that the allegations were a pretext for removing her due to disagreements over monetary policy. In a statement, she welcomed the court's decision, saying it affirmed the Fed's obligation to make independent policy decisions 'free from political interference.'

The case arose after President Trump's Justice Department attempted to lift a lower court order that blocked Cook's firing while her legal challenge continued. The Supreme Court declined that request.

In a separate ruling on the same day, the Supreme Court upheld President Trump's firing of Democratic Federal Trade Commissioner Rebecca Slaughter, overturning a 1935 precedent that had protected leaders of certain regulatory agencies from at-will removal by the president. That decision expands presidential power over independent agencies but does not affect the Fed's removal protections, which are grounded in the Federal Reserve Act.

Governor Cook was appointed by Democratic former President Joe Biden in 2022 and her term runs until 2038. The case is part of broader tensions between the Trump administration and the Federal Reserve, including a separate criminal investigation into former Fed Chair Jerome Powell that was later dropped. Powell's term as chair ended May 15, and Kevin Warsh was confirmed as his successor on May 13 and sworn in on May 22.

The Supreme Court heard arguments in the Cook case in January, with both Cook and Powell in attendance. The ruling leaves Cook in her position while her legal challenge proceeds.