After an appeals court ruled against the Trump administration in its attempt to remove Federal Reserve board member Lisa Cook, the administration has now turned to the Supreme Court for help.
The Republican-led effort, described by legal experts as unprecedented, challenges the independence of the Fed’s seven-member board. No president in the Fed’s 112-year history has fired a sitting governor.
Cook, a Biden appointee, has vowed to remain in her role. Her attorney, Abbe Lowell, said she “will continue to carry out her sworn duties as a Senate-confirmed Board Governor” and will not be “bullied” by Trump.
The White House argues Cook engaged in mortgage misrepresentations before joining the Fed, claiming she labeled two properties as primary residences, which could have affected interest rates. Solicitor General D. John Sauer wrote in the Supreme Court filing, “Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself, and refuses to explain the apparent misrepresentations.”
Cook denies any wrongdoing. Documents obtained by The Associated Press indicate she described one property as a “vacation home” and another as a “2nd home” on a security clearance form, undercutting the administration’s fraud claims.
A federal judge ruled that the firing likely violated law, noting Fed governors can only be removed “for cause,” which refers to misconduct while in office. Cook joined the board in 2022. A federal appeals panel rejected the Trump administration’s appeal by a 2-1 vote.
The Supreme Court filing seeks a temporary order to remove Cook while her case proceeds and a longer-term injunction from the full court. Trump has previously secured court approval to remove leaders of other independent agencies, but the Supreme Court has emphasized that the Federal Reserve is distinct, limiting presidential authority to act without cause.
Cook and Trump’s nominee Stephen Miran both participated in the Fed’s recent interest rate vote. Cook’s next opportunity to vote will be at the committee meeting scheduled for October 28-29.
