Trump Asks Supreme Court to Allow Removal of Fed Governor Lisa Cook

New Delhi,UPDATED: Sep 19, 2025 01:14 IST

The Trump administration has formally requested that the US Supreme Court immediately remove Lisa Cook from her position as a governor on the Federal Reserve Board. This request follows a setback in the appeals court, which denied the bid to unseat Cook, amplifying Donald Trump’s attempt to shift the Federal Reserve’s leadership. Such a step marks a highly unusual challenge to the established autonomy of the Federal Reserve, an institution structured to function independently of routine political influence.

LEGAL AND POLITICAL CONTEXT

President Trump’s efforts target broader changes across the seven-member Federal Reserve Board. No president in the Federal Reserve’s 112-year history has managed to depose a sitting governor. This Supreme Court appeal comes after both a federal judge and the Washington appeals panel turned down the administration’s request, invoking legal limits on when a governor’s removal is permitted.

The move to dismiss Cook is based on accusations that she provided misleading information regarding her primary residence on mortgage applications prior to joining the board. In documents submitted to the Supreme Court, Solicitor General D. John Sauer stated: "Put simply, the President may reasonably determine that interest rates paid by the American people should not be set by a Governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations."

COOK’S RESPONSE AND LEGAL BACKING

Lisa Cook, appointed to the Federal Reserve Board by President Joe Biden, rejects the allegations and insists she will not step down. Her legal representative, Abbe Lowell, stated that she "will continue to carry out her sworn duties as a Senate-confirmed Board Governor." Documentation obtained by the Associated Press reveals that Cook described her Atlanta property as a "vacation home" in a mortgage-related document, and as a "2nd home" on a security clearance form. These records challenge the strength of the administration’s fraud accusations.

COURT RULINGS AND ONGOING PROCEEDINGS

US District Judge Jia Cobb concluded that the government’s case failed to satisfy the statutory requirement to remove a Federal Reserve governor "for cause," interpreting this as misconduct within the official period of service. Cook joined the Federal Reserve Board in 2022, subsequent to the activities cited in the allegations.

ARGUMENTS CONCERNING TRUST AND SUITABILITY

Legal representatives for the administration contend that, regardless of when the alleged conduct occurred, it "indisputably calls into question Cook’s trustworthiness and whether she can be a responsible steward of the interest rates and economy."

A request remains before the Supreme Court for a temporary order to suspend Cook during these proceedings. Recently, Senate Republicans confirmed Stephen Miran, nominated by Trump, to another vacancy on the Federal Reserve Board. Both Cook and Miran voted in the latest decision to lower the main interest rate. The next scheduled vote for Cook will occur at the Federal Open Market Committee session on 28–29 October.

BROADER IMPLICATIONS OF FED INDEPENDENCE

The campaign to oust Cook has triggered discussion over the extent of the executive’s authority and the independence of the central bank. Historically, the Supreme Court has applied more stringent removal standards to the Federal Reserve compared to other federal bodies. The final decision in this case may reshape the boundaries between presidential powers and the central bank’s self-governance.

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