Trump seeks new path to remove Fed Governor Cook after Supreme Court setback

President Donald Trump is pursuing a new strategy to remove Federal Reserve Governor Lisa D. Cook after the Supreme Court blocked his initial attempt. Trump expressed his intent to find another way to dismiss Cook, whom he accused of making "irregularities" and taking critical decisions affecting U.S. well-being.

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will take appropriate measures so that a person who has committed irregularities does not continue to make critical decisions that concern the well-being of the United States.

The Supreme Court's 5-4 decision, described by Trump as "procedural," prevented his previous attempt to fire Cook. He had argued last year that Cook had presented misleading information about her financial situation to secure favorable terms for a mortgage. Cook has denied any wrongdoing and is not facing criminal charges.

Cook's legal team argued that Trump's removal attempt was part of a broader effort to pressure the Fed into lowering interest rates. A federal judge initially allowed Cook to remain in her position pending a review of the dismissal's legality, a decision the government appealed to the Supreme Court.

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For the avoidance of doubt, the final question whether the President may remove a member of the Board for cause under § 2402 will depend on further proceedings, not on us.

The majority opinion, authored by Chief Justice John J. Roberts, upheld the lower court's ruling. The justices found that the president had not provided Cook with the required opportunity to respond to the accusations before attempting her dismissal. However, the decision leaves significant legal questions unanswered regarding the conditions under which a president can remove a Senate-confirmed board member. Chief Justice Roberts noted that the ultimate question of whether Trump can remove Cook for a specific reason will depend on the facts, which have not yet been established or evaluated.

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We do not reach the question whether the President may remove a member of the Board for cause under § 2402.