WASHINGTON — The U.S. Supreme Court on Monday blocked President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook, ruling that she can remain in her position while her legal challenge proceeds.
In a 5-4 decision, the court denied the Trump administration’s request for an immediate stay that would have allowed Cook’s removal. Chief Justice John Roberts wrote the majority opinion, affirming that Cook must be given an opportunity to contest the allegations cited in her purported dismissal.
Trump had attempted to remove Cook in August 2025, citing what the administration described as “reason to believe” she may have made false statements on mortgage agreements. Cook, appointed to the Fed board by then-President Joe Biden in 2022, has denied the allegations and challenged the firing as lacking sufficient cause under the Federal Reserve Act.
Lower courts had previously sided with Cook. A U.S. District Court judge in Washington issued a preliminary injunction preventing her removal, and the D.C. Circuit Court of Appeals declined to overturn it. The Supreme Court had earlier rejected an emergency appeal from the administration in October 2025 before hearing oral arguments in January.
The ruling comes as the first time in the Federal Reserve’s more than 110-year history that a president has sought to remove a governor. Legal experts and Fed officials have warned that such a move could undermine the central bank’s independence from political pressure, particularly on monetary policy decisions.
The Trump administration argued that the president has broad authority to remove principal executive officers, including Fed governors, for cause as provided by statute. Justice Clarence Thomas dissented, contending that the court should not block the president’s removal authority.
Cook’s attorneys maintained that no valid cause existed and that proper due process was not followed. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said in a statement following the initial attempt.
The decision does not resolve the underlying dispute over the scope of presidential removal power at the Fed but keeps Cook on the seven-member Board of Governors for now. The case will continue in lower courts.
Fed Chair Jerome Powell has emphasized the importance of the central bank’s independence. The board sets key interest rates and oversees aspects of the U.S. financial system.
The ruling contrasts with the court’s approach in related cases involving other independent agencies, where it has expanded presidential authority to remove certain officials. In this instance, however, the justices carved out protections tied to the Fed’s unique statutory structure and historical independence.
A spokesperson for the White House did not immediately respond to a request for comment. Cook’s legal team welcomed the decision as preserving institutional safeguards.
