Supreme Court keeps Lisa Cook at Federal Reserve
The Supreme Court ruled 5-4 that President Donald Trump cannot fire Lisa Cook from the Federal Reserve, maintaining checks on presidential power and Fed independence.
The White House sent a letter to Federal Reserve Governor Lisa Cook telling her to respond to allegations of making false statements when she obtained two mortgages in Georgia or risk being fired.
The Aug. 5 letter from the White House says it is a formal notice that “the president is considering removing you from your position” and directs her to respond to the allegations in writing by Aug. 26.
“The Supreme Court recently determined that you are entitled to notice of the allegations against you and an opportunity to respond prior to your removal,” the letter says, and then references an attached criminal referral.
Trump attempted to fire Cook in 2025, alleging that she improperly wrote on mortgage applications that two different properties were her primary residence in order to pay lower interest rates. She has been challenging the case in court ever since.
Federal law only allows presidents to remove members of the Federal Reserve Board of Governors for cause, which usually refers to serious misconduct. The Supreme Court ruled in June that Cook could stay in her position while lower courts address the rest of the case.
Abbe Lowell, Cook’s lawyer, told USA TODAY in a statement that the allegations “as baseless now as they were a year ago.”
“No matter what President Trump tries to do next, this much is clear under the facts and Supreme Court precedent – there is no valid cause for removing Governor Cook,” Lowell wrote.