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Supreme Court To Weigh Trump’s Power to Oust Fed Governor as Powell Plans to Attend

The outcome could reset removal limits for Fed governors to a degree that tests the central bank’s independence.

The U.S. Supreme Court on Jan. 21 will hear arguments as to whether President Trump can fire Federal Reserve Governor Lisa Cook, shown here with Fed Chair Jerome Powell, for cause over unsubstantiated allegations of mortgage fraud.
The Federal Reserve building is seen in Washington, U.S., October 20, 2021. REUTERS/Joshua Roberts
FILE - Lisa Cook, a Federal Reserve Board of Governors member, speaks during an event at the Brookings Institution, Nov. 3, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
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Overview

  • Oral arguments Wednesday will consider whether President Trump can remove Governor Lisa Cook for alleged mortgage misconduct under the Federal Reserve Act’s “for cause” standard.
  • Cook remains in office after lower-court rulings blocked her ouster and the Supreme Court allowed her to stay while it hears the case; she denies wrongdoing and has not been charged.
  • Jerome Powell’s planned presence follows his Jan. 11 disclosure of Justice Department grand‑jury subpoenas and a probe he labeled a pretext to pressure monetary policy.
  • An earlier unsigned Supreme Court order called the Fed “uniquely structured,” a signal that the justices may treat the central bank differently from other independent agencies.
  • If Trump ultimately prevails and fills Cook’s seat, his appointees could gain a board majority, expanding presidential influence over interest-rate and regulatory decisions.