The Supreme Court does not allow Mr. Trump to fire the Fed governor

In the ruling, the Supreme Court said Ms. Cook could continue to hold her position as a member of the Fed Board of Governors while pursuing a lawsuit to refute the Trump administration’s allegations. “The President has not afforded Ms. Cook the procedural protections to which she is entitled under the law. Without such protections, she would not have had the opportunity to rebut the allegations made against her by the President,” the notice said.

At the end of August 2025, President Trump announced the firing of Ms. Cook, alleging mortgage fraud. Authorities say she declared both the properties she bought in Michigan and Georgia as her “primary residence,” which allowed her to earn lower interest rates than if she were classified as a second home or rental property.

A few days later, Ms. Cook filed a lawsuit against this decision. On September 9, 2025, Washington (DC) Federal Court Judge Jia Cobb issued a temporary restraining order, preventing Mr. Trump from implementing the dismissal order while the lawsuit is being processed. In response, Mr. Trump continued to ask the Washington Court of Appeals to grant immediate dismissal, but was denied a week later.

With its decision on June 29, the US Supreme Court also rejected Mr. Trump’s request to suspend the lower court’s order. This agency heard arguments from the parties on January 21. During the hearing, many judges appeared skeptical of the Justice Department lawyer’s argument that Mr. Trump had a legal basis to fire Ms. Cook.

Under the US Federal Reserve Act, the President can only remove a Fed governor for “good cause”. Mr. Trump said he wanted to dismiss Cook for alleged mortgage fraud. However, she and many others believe that the real reason is that she did not vote in favor of reducing interest rates according to the President’s wishes. “This has nothing to do with mortgage documents signed many years before I became Fed governor,” she said on June 29.

Cook was appointed by former President Joe Biden and is the first woman of color to serve as Fed governor. Commenting on the Supreme Court’s ruling, she said that this reinforces a principle that has underpinned economic governance for generations: “The Fed must make all policy decisions based on evidence and independent assessment, free from political interference.”