U.S. Supreme Court Bars Trump From Firing Federal Reserve Governor Lisa Cook

The U.S. Supreme Court left in place a ban preventing Donald Trump from firing Federal Reserve Board of Governors member Lisa Cook.

Cook, who was appointed to the Fed’s Board of Governors under Joe Biden in 2022, challenged Trump’s order dismissing her. Her term was not due to end until 2036.

In August 2025, Trump ordered Cook’s dismissal after allegations of mortgage fraud. The accusations against her were brought by William Pulte, director of the Federal Housing Finance Agency. The materials were sent to the U.S. Justice Department, which must decide whether there are grounds to open a criminal case.

Trump considered the mere fact of the allegations sufficient grounds for Cook’s urgent dismissal. She challenged the decision in court.

U.S. media wrote that Trump may have used the accusations as a convenient pretext to replace Cook, whom he viewed as a representative of the Biden administration, with a more loyal figure.

The federal court for the District of Columbia had earlier suspended enforcement of the presidential order until the case is considered on the merits. The judge indicated that there was a high likelihood the dismissal would be found baseless.

The White House tried to challenge the ban first in an appeals court and then in the Supreme Court. However, the Supreme Court left the ban on enforcement of the order in place.

The decision does not overturn Trump’s order itself, does not definitively confirm Cook’s right to keep her position and does not clear her of the allegations. It concerns a temporary ban on dismissal until the case is considered on the merits.

The key issue in the case concerns the independence of the Federal Reserve System from the executive branch. The court effectively indicated that the president cannot fire a member of the Fed’s Board of Governors at his own discretion without sufficient grounds.

The final decision on the legality of Trump’s order must be made by the federal court for the District of Columbia after Cook’s case is considered on the merits.

Trump has already said the Supreme Court made its decision “solely on procedural grounds,” and made clear that he does not intend to accept Cook remaining in her position.

“We will immediately take appropriate action to ensure that a person who has committed unlawful acts will not be making important decisions affecting the well-being of the United States of America!” Trump wrote on Truth Social.