President Donald Trump on Monday vowed to take additional action against Federal Reserve Governor Lisa Cook after the U.S. Supreme Court refused to let him immediately remove her from office, preserving the Federal Reserve’s longstanding independence while litigation continues.
In a 5-4 decision, the Supreme Court denied Trump’s request to stay a lower court order that blocked Cook’s removal, allowing the Federal Reserve governor to remain in office as her legal challenge proceeds. The ruling marked the first time the Court directly addressed a president’s attempt to remove a sitting Federal Reserve governor.
Chief Justice John Roberts, writing for the majority, said the Federal Reserve Act provides governors with statutory protections and that they serve staggered 14-year terms, removable only “for cause.” The Court found Trump had not afforded Cook the procedural protections required under federal law.
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Shortly after the ruling, Trump signaled he was not backing down.
“The Cook lawsuit, having to do with her suitability in sitting on the Board of the Federal Reserve, was sent back by the Supreme Court on a strictly procedural basis,” Trump wrote on Truth Social. “We will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!” he added.
Trump has accused Cook of mortgage fraud, allegations that she has repeatedly denied. Her attorneys have argued that the accusations are unfounded and that the president’s effort to remove her was motivated by policy disagreements rather than legitimate misconduct.
Cook welcomed the Supreme Court’s decision, describing it as an important affirmation of the Federal Reserve’s independence. “The Supreme Court’s decision recognizes that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment,” she said in a statement. Cook also argued that Trump’s removal effort was based on a “manufactured pretext” because she refused to allow political considerations to influence monetary policy decisions.
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The ruling comes amid Trump’s broader efforts to expand presidential authority over independent federal agencies. On the same day, however, the Supreme Court issued a separate decision allowing the president broader authority to remove officials at the Federal Trade Commission, underscoring that the Federal Reserve occupies a distinct constitutional and statutory position.
The case now returns to lower courts, where judges will continue considering whether Trump has legal grounds to remove Cook under the Federal Reserve Act. Until that process concludes, Cook will remain on the Federal Reserve Board of Governors.The dispute has drawn significant attention because it tests the balance between presidential authority and the Federal Reserve’s institutional independence. Financial markets have long viewed the central bank’s insulation from political pressure as a cornerstone of U.S. monetary policy.
Trump has frequently criticized the Federal Reserve over interest-rate decisions and has argued that the central bank should adopt policies that better support his economic agenda. Monday’s ruling represents a setback for those efforts but leaves open the possibility of additional legal proceedings over Cook’s tenure.