The U.S. Supreme Court has blocked President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, ruling that the administration failed to provide her with sufficient due process before seeking her dismissal.
In a narrow 5-4 decision, the court sent the case back to lower courts, where the Trump administration must present evidence supporting its allegations that Cook committed mortgage fraud.
According to BBC report, federal law allows a president to remove a Federal Reserve governor only "for cause," a safeguard designed to protect the central bank's independence from political pressure.
The report said the administration argued Cook's alleged mortgage filing errors undermined confidence in the Federal Reserve. However, the court ruled she must first be given a meaningful opportunity to challenge the allegations before any removal can proceed.
Related Tweet:
The US Supreme Court refused to let President Donald Trump immediately fire Federal Reserve Governor Lisa Cook in a case that tested the central bank’s independence from the White House. https://t.co/4DFC0sLVQS
— Bloomberg (@business) June 29, 2026
Also Read:
TIPP Staff
