Supreme Court blocks Trump from firing Fed's Lisa Cook
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- Supreme Court ruled 5-4 on Monday to block Trump's attempt to fire Fed Governor Lisa Cook, the first such removal challenge since the central bank was created in 1913
- Chief Justice John Roberts wrote that Cook was entitled to procedural protections by statute, and that Fed governors serve staggered 14-year terms and may only be removed 'for cause' — not at the president's pleasure
- Roberts and Brett Kavanaugh joined the three liberal justices in the majority; Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett dissented
- Trump cited Cook's alleged designation of two properties in Michigan and Georgia as 'primary residences' in June and July 2021, before she joined the Fed, as grounds for firing her — claims Cook denied and called a 'manufactured pretext' to pressure monetary policy
- Cook was appointed by Biden in 2022 with a term running until 2038, and argued the firing attempt was retaliation for refusing to bow to political pressure on interest-rate decisions
- In a separate Monday ruling, the Court backed Trump's firing of FTC member Rebecca Slaughter, overturning a 1935 precedent that protected leaders of certain regulatory agencies from at-will presidential removal
Why it matters: The ruling preserves Fed independence at a moment when Trump had explicitly attacked the central bank and launched an investigation into Chair Jerome Powell over its reluctance to cut rates as quickly as he wanted. By treating the Fed differently from agencies like the FTC — where the Court allowed Slaughter's removal — the majority drew a line between monetary policy and other regulatory functions, handing Cook a likely path to keep her seat through 2038.
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