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Supreme Court Hears Trump Bid To Remove Fed Governor Lisa Cook

The case will test limits on presidential power over an independent central bank.

Overview

  • The justices are considering an emergency appeal on whether the president may remove a Federal Reserve governor for alleged mortgage misconduct and whether courts can review that determination.
  • Lisa Cook remains on the board under lower-court orders after judges found the administration had not satisfied the statutory requirement to show cause.
  • Fed Chair Jerome Powell is attending the argument as the Justice Department investigates him and has issued subpoenas to the central bank, a push he decried as based on “pretexts.”
  • The allegations against Cook arise from a complaint that she listed two properties as primary residences; she denies wrongdoing and has not been criminally charged.
  • If removal is allowed, President Trump could appoint a successor and potentially secure a board majority, altering the balance over interest-rate and regulatory decisions.