Supreme Court Blocks Trump From Firing Fed Governor
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- Supreme Court ruled Monday that Trump's "purported" firing of Federal Reserve Governor Lisa Cook was improper, rejecting the administration's request to stay a lower court order that allowed her to keep her job
- The 5-4 majority opinion, written by Chief Justice John Roberts, held that "not only the fact of independence but also the appearance of independence is key to the Federal Reserve's design," joined by the three liberal justices and Justice Brett Kavanaugh
- In a separate ruling the same day, the Court upheld Trump's ability to fire Federal Trade Commission members, overturning nearly a century-old precedent—a contrast Roberts said reflects the Fed's unique statutory status
- Kavanaugh wrote in his concurrence that "even temporary uncertainty about the status of the Federal Reserve could spark political upheaval, including... turmoil in the U.S. and world economies," adding: "I would not go down that road"
- Roberts noted in a footnote that the ruling does not bar Trump from trying again to fire Cook through proper procedures, but she would be entitled to judicial review—leaving the door cracked open for a renewed fight
- Cook was removed after Bill Pulte, Trump's housing administrator and current nominee to oversee the U.S. intelligence community, alleged mortgage fraud—a tactic Pulte also used against New York AG Letitia James; Cook has denied the allegations and her term is guaranteed until 2038
- The dissent was led by Justice Clarence Thomas
Why it matters: The Court drew a constitutional line around Fed independence, rejecting Trump's bid to remove a governor whose term runs until 2038 without due process. Trump can attempt to refire Cook through the procedures the ruling outlines, but Pulte's renewed mortgage fraud allegations (per The Hill) suggest that fight is coming fast—while Kavanaugh's concurrence warns that any uncertainty about Fed governance could roil U.S. and world economies.
