Supreme Court Rejects Bid to Remove Fed Governor
In a ruling issued on Monday morning, June 29, 2026, the United States Supreme Court rejected President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook from her position.
The court ruled five to four in favor of Cook. The decision upheld lower court decisions that blocked an order for her firing.
Legal Basis and Historical Context
Governor Lisa Cook filed a lawsuit alleging President Trump's move to fire her was not "for cause," as required by federal law. She described the removal attempt as an effort to remove her on a "manufactured pretext" because she refused political pressure.
The Wall Street Journal reported that this specific removal attempt is the first by a president against a Federal Reserve governor in the institution's 111-year history.
Origins of the Dispute
The effort to remove Cook began in late August of the previous year. This timeline followed allegations made by Bill Pulte, director of the Federal Housing Finance Agency.
Pulte alleged that Cook committed mortgage fraud four years ago regarding home descriptions for properties in Michigan and Atlanta.
Broader Pressure on Central Bank
Sources indicate that since the start of his second term, President Trump has reportedly exerted pressure on the Federal Reserve. This campaign included attacking former Fed Chair Jerome Powell for failing to cut interest rates.
Federal prosecutors reportedly opened a criminal investigation earlier this year into whether Jerome Powell misled Congress regarding the cost and scope of a $2.5 billion project.