The Trump administration on Thursday, September 18, 2025, filed an emergency request with the U.S. Supreme Court seeking immediate permission to remove Lisa Cook from her position as a Federal Reserve governor. The move follows a lower court's temporary injunction blocking President Trump's attempt to oust Cook, who was appointed by President Joe Biden.
The case centers on the scope of presidential power to remove Federal Reserve governors "for cause," as stipulated by the Federal Reserve Act of 1913, which grants 14-year terms to governors unless removed for specific reasons. The administration alleges Cook engaged in mortgage fraud related to loan documents signed before her Fed appointment, though she has not been criminally charged.
U.S. District Judge Jia Cobb had ruled that Cook could not be removed for conduct predating her Fed tenure or for allegations unrelated to her professional duties. A divided three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit upheld this injunction, emphasizing the Fed's unique independence and the importance of tenure protections to maintain market confidence.
Solicitor General D. John Sauer argued before the Supreme Court that the lower courts improperly interfered with the president's removal authority and that Cook was afforded due process. The administration contends that allowing Cook to remain undermines ethical standards and the president's constitutional powers.
The Supreme Court's conservative majority has previously allowed the president to remove leaders of other independent agencies without cause, but has indicated the Federal Reserve may warrant special protection due to its critical role in the U.S. economy. The court's decision in this case could significantly affect executive control over the Federal Reserve and its policymaking independence.
Lisa Cook was present at the Federal Reserve's recent meeting where interest rates were cut for the first time since December, despite the ongoing legal dispute over her removal.
This legal battle is part of a broader pattern of the Trump administration seeking to expand executive authority over independent federal agencies, raising concerns about the politicization of institutions designed to operate with a degree of autonomy.
