The US Supreme Court delivered a landmark ruling on Monday, preventing President Donald Trump from dismissing Federal Reserve Governor Lisa Cook. This decision reinforces the autonomy of the central bank, even as the court simultaneously expanded presidential authority over other federal agencies.
In a narrow 5-4 vote, the justices blocked Trump’s attempt to remove Cook, citing insufficient procedural protections. This ruling safeguards the Federal Reserve from political interference, a contentious issue during Trump’s second term in office.
Chief Justice John Roberts wrote the majority opinion, joined by Justice Brett Kavanaugh and the court’s three liberal justices. Roberts emphasized that Federal Reserve governors serve fixed 14-year terms and may only be removed “for cause,” a safeguard established since the Fed’s founding in 1913 to protect monetary policy from short-term political pressures.
The case arose from unsubstantiated allegations of mortgage fraud against Cook, the first Black woman appointed to the Fed board. Trump sought to remove her in August 2025, but the court ruled that she must be granted due process to challenge the accusations.
Cook praised the ruling, stating it confirmed the Fed’s responsibility to formulate policy based solely on the economic interests of the American public, free from political influence.
While the court’s decision does not settle the underlying factual disputes, which may be revisited in lower courts, it firmly upholds the Federal Reserve’s structural independence. Cook’s term is scheduled to continue until 2038.
Meanwhile, in a separate 6-3 ruling, the court sided with Trump by allowing him to remove a member of the Federal Trade Commission. This decision overturned a 1935 precedent and expanded presidential control over certain independent federal agencies.
Some justices dissented in the Federal Reserve case, arguing the president should have broader authority to remove officials. Trump indicated that the court’s ruling regarding Cook could prompt further actions.
The rulings come amid ongoing tensions between the Trump administration and the Federal Reserve. Trump has advocated for quicker interest rate reductions as part of his broader push to enhance presidential power. Earlier this year, Kevin Warsh assumed the role of Federal Reserve chair following the conclusion of Jerome Powell’s term.
