Supreme Court blocks Trump's attempt to fire Fed governor Lisa Cook

Key facts

• The Supreme Court blocked President Trump's attempt to remove Federal Reserve Governor Lisa Cook.
• The court cited the need for due process and the preservation of the Fed's independence.
• The ruling allows Cook to remain on the Fed board while legal challenges to her removal continue.
• The Supreme Court also expanded presidential power by backing Trump's firing of FTC member Rebecca Slaughter.
• The Fed's independence may be weakened as other agencies lose protections from presidential removal.

The Supreme Court has blocked President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, affirming the central bank's independence. In a 5-4 decision, the court stated that any attempt to fire a Fed governor would face a "substantial" hurdle to prove alleged misconduct and its connection to their duties, emphasizing that "Nothing could be more corrosive of the independence that Congress sought to preserve."

However, the ruling also saw the court overturn a 1935 precedent in a separate case, backing Trump's firing of Federal Trade Commission member Rebecca Slaughter and expanding presidential powers over government officials. This decision leaves the Federal Reserve potentially isolated as the last agency able to wield executive power based on expertise free from the threat of presidential dismissal.

Columbia Law School professor Kathryn Judge noted that while Fed independence "lives on," its foundation is now "much weaker," placing more pressure on the Fed to justify its unique status. The court cited the Fed's distinct history, hybrid public-private structure, and freedom from congressional appropriations as reasons for its special protection.

While the immediate threat to Fed Governor Cook has eased, the court did not rule on the substance of the allegations against her, and Trump has indicated he will continue to pursue the matter in a federal appeals court. The ruling also lifts a potential cloud over new Fed Chairman Kevin Warsh, who has received assurances of non-interference from Trump.