WASHINGTON – The U.S. Supreme Court prepares to scrutinize President Donald Trump’s unprecedented attempt to dismiss Federal Reserve Governor Lisa Cook via a Truth Social post, as arguments unfold Wednesday in a case testing presidential power and central bank independence.
Trump announced Cook’s removal on August 25, 2025, in a letter shared online, citing mortgage fraud allegations from Trump appointee Bill Pulte at the Federal Housing Finance Agency. No president has ever ousted a Fed governor since 1913, and Cook, appointed in 2022 by Joe Biden as the first Black woman in the role, challenges the move as violating her Fifth Amendment due process rights and the Federal Reserve Act’s “for cause” removal standard.
Lower courts, including U.S. District Judge Jia Cobb, blocked the firing, ruling Trump’s social media notifications lacked proper notice or hearing opportunity. The Justice Department counters that no property right exists in government office and that prior posts gave Cook adequate chance to respond over five days.
Case Stakes and Broader ImplicationsCook’s team argues the fraud claims are pretextual, tied to her resistance against Trump’s demands for swift rate cuts, mirroring probes into Fed Chair Jerome Powell. Legal experts like Fordham’s Jane Manners note precedents may require a judicial-style hearing with evidence and testimony.
The court’s conservative majority could rule on procedural grounds, sidestepping debates over Fed autonomy. A victory for Trump might erode safeguards against political meddling in monetary policy, while upholding Cook reinforces congressional intent in the Federal Reserve Act.
This clash highlights Trump’s social media governance style, raising questions on executive authority versus judicial oversight in high-stakes economic roles.