US Supreme Court blocks Trump bid to fire Fed governor Cook

The U.S. Supreme Court on Monday refused to allow former President Donald Trump to fire Federal Reserve Governor Lisa Cook, preserving the central bank's independence. In a 5-4 decision, the court found that Trump had not afforded Cook the procedural protections required by statute before attempting her dismissal.

Trump had cited unproven mortgage fraud allegations in August to remove Cook, the first Black woman to serve as a Fed governor. Cook denied the allegations, stating they were a pretext for monetary policy differences. Chief Justice John Roberts, writing for the majority, stated that without proper protections, Cook could not dispute the charges against her.

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

This ruling specifically safeguards the Fed, even as the court issued a separate, landmark decision on the same day that expanded presidential authority to fire leaders of other U.S. agencies. This separate ruling overturned a precedent dating back to 1935 regarding the dismissal of Federal Trade Commission members.

Cook welcomed the decision, affirming the Fed's need to operate free from political interference in its policy decisions. No president had previously attempted to oust a Fed governor since the central bank's founding in 1913.

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affirming the Fed’s obligation to make policy decisions independently, free from political interference.