On Monday, June 29, 2026, the U.S. Supreme Court blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, issuing a narrow 5-4 decision that safeguards the central bank’s independence from immediate executive interference.
Chief Justice John Roberts and Justice Brett Kavanaugh sided with the court's three liberal justices to form the majority. The court ruled that the Trump administration failed to provide Cook with the statutory procedural protections and sufficient due process required to contest her firing.
Under the Federal Reserve Act, a president can only remove a governor "for cause". The majority emphasized that a president cannot dismiss an independent Fed official "for any reason or no reason". The legal battle began in August 2025 when President Trump ordered the termination of Cook; the first Black woman to serve on the Fed's Board of Governors over allegations of mortgage fraud dating back to 2021. Cook has denied the accusations, which her attorneys argue are a politically motivated pretext to compromise the Federal Reserve's long-term economic autonomy.
Because the Supreme Court's ruling leaves a lower-court block in effect, Cook will remain in office as the litigation moves forward. The case now returns to lower courts, where the Trump administration must legally substantiate its allegations before attempting to proceed with a removal.
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