Trump Asks Supreme Court to Allow Removal of Fed Governor Lisa Cook

President Donald Trump’s administration has asked the U.S. Supreme Court to let him move forward with firing Federal Reserve Governor Lisa Cook, a move that would be unprecedented since the Fed’s creation in 1913. The Justice Department urged the court to lift a lower court order blocking her removal, arguing that the president has broad discretion to remove officials “for cause.” Cook, the first Black woman to serve as a Fed governor, was appointed in 2022 by former President Joe Biden and has denied Trump’s claims that she falsified mortgage records before taking office.

Cook sued Trump in August, contending that the allegations were a pretext to oust her over her monetary policy views, particularly after she voted in favor of a recent Fed interest rate cut. A district court ruled that the 1913 Federal Reserve Act only permits removal for misconduct while in office, and the appeals court has since agreed that she likely was denied due process. Trump, however, maintains that his authority to remove governors is not subject to judicial review so long as he cites a cause.

The battle has raised global concerns about the Fed’s independence, long considered vital for setting interest rates free from political influence. Economists warn that Cook’s removal could destabilize financial markets and undermine confidence in U.S. monetary policy. The Supreme Court, which has previously sided with Trump on other removals, signaled earlier this year that it views the Fed as a uniquely independent body, setting up a high-stakes test for both presidential power and the central bank’s autonomy.

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