The U.S. Supreme Court on Wednesday appeared inclined to allow Federal Reserve Governor Lisa Cook to remain in office, raising doubts about President Donald Trump’s effort to remove her from the central bank’s board.
During oral arguments, several justices expressed skepticism over Trump’s attempt to dismiss Cook based on allegations of mortgage fraud, which she has strongly denied. No U.S. president has ever fired a sitting Federal Reserve governor in the institution’s 112-year history, underscoring the Fed’s long-standing independence from partisan politics.
Justice Brett Kavanaugh, a Trump appointee, warned that allowing Cook’s removal could “weaken, if not shatter, the independence of the Federal Reserve.” At least five other justices echoed similar concerns, signaling broad unease with the president’s actions.
Cook and Federal Reserve Chair Jerome Powell were present in the courtroom as the justices considered whether Cook should remain in her post while her legal challenge proceeds. Lower courts have already ruled that she can continue serving during the litigation.
Critics of the president argue that the effort to remove Cook—who is the first Black woman to serve as a Fed governor—is driven less by legal concerns and more by Trump’s desire to influence U.S. interest-rate policy. Removing her could allow Trump to appoint a replacement and gain greater sway over the Fed’s decisions, a prospect closely watched by financial markets.
Trump has repeatedly criticized the Fed for not cutting interest rates aggressively enough, arguing that lower rates would reduce borrowing costs for the government and consumers. While the Fed lowered rates three times in late 2025, it has signaled caution amid ongoing inflation concerns.
Chief Justice John Roberts also appeared wary of Trump’s approach, suggesting the court might issue a definitive ruling rather than send the case back to lower courts. The dispute has intensified tensions between the White House and the Fed, with the Justice Department opening investigations related to Fed leadership and issuing subpoenas to the central bank.
Trump’s legal team argued that Cook’s alleged misstatements on mortgage documents amount to “gross negligence” and justify her removal, asserting that courts should not review the president’s decision. Cook, however, has not been charged with any crime and has denied any intent to mislead lenders.
Her attorney, Abbe Lowell, said the allegations rest on a misinterpretation of a single document and are contradicted by multiple disclosures identifying one property as a second or vacation home. He described the accusations as baseless and insufficient grounds for dismissal.
The Supreme Court is now expected to decide whether to block Trump’s emergency appeal and allow Cook to remain on the Fed board while the case continues in lower courts.
