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The US Supreme Court has ruled that President Donald Trump's firing of Federal Reserve Governor Lisa Cook was unconstitutional, in a decision that limits presidential authority over the central bank. The 5-4 ruling, handed down on Monday, blocks Trump's attempt to remove Cook, whom he dismissed last August amid unproven allegations of mortgage fraud.

Chief Justice John Roberts, writing for the majority, said that Trump did not "afford Cook the procedural protections to which she was entitled by statute," adding that without such protections she "could not properly dispute the charges the president laid against her." Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett dissented.

Coverage Comparison

Reports from Al Jazeera, BBC — World, and The Guardian — World all emphasize that the ruling affirms the Federal Reserve's independence from political pressure. Al Jazeera frames the decision as blocking Trump's attempt to fire Cook, while BBC notes that it sends the matter back to lower courts where the administration must prove its allegations. The Guardian describes the ruling as "landmark," restricting a president's ability to remove Fed governors without cause.

The coverage also highlights the context of Trump's broader pressure campaign on the central bank, which he has repeatedly criticized for not cutting interest rates fast enough. Al Jazeera and The Guardian both report that Trump has a history of attacking the Fed and its governors, viewing lower rates as essential to his economic agenda.

Key Claims

  • 5-4 Supreme Court decision: The court ruled that Trump does not have the constitutional authority to fire a Fed governor without cause. The decision was split along ideological lines, with Chief Justice Roberts and Justice Brett Kavanaugh joining the three liberal justices in the majority.
  • Due process violation: The court found that the administration did not provide Cook sufficient "due process" to contest her removal. The decision returns the case to lower courts, where the administration must prove its allegations of mortgage fraud if it wishes to proceed with the firing.
  • Allegations of mortgage fraud: Cook denied the allegations, which she and her supporters characterize as a pretext to allow Trump to assert more control over the Fed. Trump announced his plan to fire Cook on social media in August, citing claims that she listed two different principal residences on mortgage forms.
  • 'For cause' removal standard: By law, presidents can only remove Fed governors "for cause." This requirement was intended to shield the bank from political pressure and help ensure it sets policy for long-term economic goals. Chief Justice Roberts wrote that Fed governors "do not serve at the president's pleasure" and instead serve staggered 14-year terms.
  • Cook's history and legal fees: Lisa Cook is the first Black woman to serve on the Fed's board. Her term is scheduled to expire in 2038. According to ethics disclosures, Cook faced over $1.3 million in legal and security fees after coming under attack from the Trump administration.

Perspectives

The Trump administration argued that the social media post providing notice of the firing was sufficient. Solicitor General John Sauer, who argued the case for the White House, told the court in January that the issue, even if inadvertent, amounted to "negligence" that could undermine confidence in the Fed, and that courts should defer to the president's judgment when it comes to finding a cause.

Cook's lawyer, Paul Clement, argued that the administration's handling of the firing would make Congress' intended protection for the Fed "kind of a joke." Fed defenders say the allegations are a pretext to allow Trump to assert more control over the bank.