US President Donald Trump’s administration on Thursday asked the Supreme Court to allow him to immediately remove Lisa Cook as a governor of the Federal Reserve. Since returning to the White House, Trump has aggressively targeted leaders of independent agencies to expand executive power and control the federal bureaucracy.
Focus on the Federal Reserve
For months, Trump’s team has pressured the Federal Reserve to lower interest rates. While the Supreme Court’s conservative majority has allowed Trump to fire other agency heads provisionally without explanation, justices have noted that the Fed may enjoy special legal protections against presidential interference.
Despite this, Trump claimed there was “sufficient cause” to remove Cook.
Administration’s Arguments
The Justice Department argued that the president has the authority to fire Cook. They said she allegedly engaged in mortgage fraud in loan documents signed before joining the Fed in 2022.
However, Cook has not been charged with any crime.
The emergency request to the Supreme Court came after a recent appeals court blocked Trump from removing Cook, who was appointed by former President Joe Biden.
Meanwhile, Cook sued the Trump administration to challenge her firing. The case is still pending. On Wednesday, she was present when the Fed voted to cut interest rates for the first time since December.
Solicitor General’s Statement
Furthermore, Solicitor General D. John Sauer told the Supreme Court that the lower court’s reinstatement of Cook showed “yet another case of improper judicial interference with the president’s removal authority — here, interference with the president’s authority to remove members of the Federal Reserve Board of Governors for cause.”
Appeals Court Ruling
The US Court of Appeals for the District of Columbia blocked Cook’s removal in a 2-to-1 ruling. However, Judge Gregory G. Katsas dissented. He cited the Federal Reserve Act of 1913, which states that governors serve 14 years unless “removed for cause by the president.”
The case now moves to the Supreme Court, where Trump seeks immediate approval to remove Cook.
Overall, this dispute highlights the ongoing tension between presidential authority and independent federal agencies, as Trump pushes to assert control over the Federal Reserve.
