Supreme Court Signals Resistance to Fed Removal
The Supreme Court appeared likely in January to prevent President Donald Trump from firing Federal Reserve Governor Lisa Cook, according to Scotusblog. During arguments in the case Trump v. Cook, a majority of justices seemed ready to reject the government’s request to remove Cook while her legal challenge to the firing continues. The Trump administration maintains the president acted within the law.
Allegations of Mortgage Fraud
President Trump fired Cook in August 2025, posting screenshots of the termination letter on Truth Social. Trump alleged that Cook committed mortgage fraud by designating a house in Michigan and a condo in Atlanta as her primary residences when taking out loans within a two-week period. Cook „unequivocally“ denies these allegations and stated she is prepared to refute them in an appropriate forum.
The Legal Threshold for Termination
Under the Federal Reserve Act, Cook can only be fired „for cause,“ a term the law does not define. Cook was first appointed to the Fed in 2022 and reappointed to a 14-year term in 2023 by then-President Joe Biden.
A Broader Campaign Against Independent Agencies
The case is part of a broader effort by the Trump administration to remove leaders of independent agencies. Scotusblog reports that the Supreme Court has already allowed Trump to remove members of the Merit Systems Protection Board, the Consumer Product Safety Commission, and the National Labor Relations Board. The court is also expected to decide by summer whether a federal law barring the removal of Federal Trade Commission members except for „inefficiency, neglect of duty, or malfeasance in office“ is constitutional, following Trump’s March firing of FTC member Rebecca Slaughter.
Tension Surrounding the Federal Reserve
Trump has been sharply critical of the Federal Reserve and its chair, Jerome Powell, specifically regarding the Fed’s reluctance to lower interest rates. Powell recently disclosed he is under investigation by Jeanine Pirro, the U.S. attorney for the District of Columbia, over statements made to Congress and alleged irregularities concerning a $2.5 billion renovation of the Fed’s headquarters. The White House stated that Trump did not direct Pirro to conduct the investigation.
An Administration Defined by Litigation
Since beginning his second term in 2025, President Trump has initiated mass layoffs of federal workers and faced over 550 lawsuits challenging the legality of various administration actions, according to Wikipedia.
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