US Supreme Court blocks Trump from firing Fed's Cook

• Before Trump, no president had tried to fire a Fed official
• Trump tests the limits of presidential authority
• Longstanding Fed independence put to the test in Cook case
• Ruling follows court's rejection of Trump's global tariffs

The US Supreme Court refused on Monday to allow US President Donald Trump to terminate Federal Reserve Governor Lisa Cook, upholding the independent status of the central bank.

The 5-4 decision prevents the administration's attempt to remove a Federal Reserve official, marking the first such attempt by a president since Congress established the central bank in 1913.

Chief Justice John Roberts, who authored the majority opinion, was joined by fellow conservative Justice Brett Kavanaugh and the court's three liberal justices.

"Trump failed to afford Cook the procedural protections to which she was entitled by statute," Roberts wrote in the ruling. "Without such protections, she could not properly dispute the charges the president laid against her."

The majority opinion further noted that Federal Reserve governors do not serve at the pleasure of the president. Instead, they serve staggered 14-year terms and can only be removed "for cause."

Background of dispute

Trump attempted to remove Cook from her position last August, citing unproven allegations of mortgage fraud.

Cook, who was appointed by former President Joe Biden in 2022 and is the first Black woman to serve as a Fed governor, denied the allegations. She countered that the accusations were a pretext to remove her due to disagreements over monetary policy.

With Monday's decision, the justices denied a request from the Trump Justice Department to lift a lower judge's order.

That original order bars the president from immediately firing Cook while her legal challenge against the termination proceeds. Cook's current term is designated to run until 2038.

Institutional context

The decision regarding the Federal Reserve arrived alongside other major rulings from the court. On the same day, the Supreme Court ruled in favor of Trump’s firing of Rebecca Slaughter, a Democratic member of the Federal Trade Commission (FTC).

The Slaughter ruling expands presidential removal powers over certain regulatory agencies, overturning a 1935 Supreme Court precedent that previously permitted Congress to protect leaders of independent regulatory bodies from at-will presidential removal.

The ruling on Cook follows a separate decision on February 20, in which the justices struck down most of Trump's sweeping global tariffs.

The legal challenges occur amid recent transitions at the Federal Reserve.

Former Fed Chair Jerome Powell concluded his eight-year tenure as chairman on May 15, though he remains a member of the Board of Governors. Trump's nominee, Kevin Warsh, was confirmed by the Senate on May 13 and sworn into office as the new chair on May 22.