The US Justice Department is pushing the Supreme Court to step in and let President Donald Trump’s decision to fire Federal Reserve Governor Lisa Cook go ahead. This move could ignite a major showdown over the Federal Reserve’s independence, sparking debates across Washington.
In a recent filing, Solicitor General D. John Sauer slammed lower court rulings as ignoring key Supreme Court precedents. The Justice Department argues that once a president like Trump gives a reason for firing someone— in this case, alleged mortgage fraud— that call is his to make without interference.
Lisa Cook, the trailblazing first Black woman to serve as a Fed governor, isn’t backing down. Appointed by President Joe Biden in 2022 to finish out a term, she was set to stay until 2038. But Trump axed her on August 25, citing mortgage fraud claims that Cook firmly denies. She quickly hit back with a lawsuit in a Washington, D.C. federal court on August 28, claiming the real motive was her differing views on monetary policy, not any wrongdoing.
A judge agreed temporarily, blocking the firing on September 9. The Trump administration appealed to the US Court of Appeals for the District of Columbia Circuit right before a key Fed meeting, but the appeals court shot it down on Monday— just hours before the two-day gathering started.
Thanks to that ruling, Cook joined the Federal Open Market Committee meeting on Tuesday and Wednesday. She voted with the majority for a quarter-point interest rate cut, helping shape US economic policy as usual.
Now, with the Justice Department’s latest push on Thursday, the spotlight turns to the Supreme Court. This Federal Reserve removal battle highlights tensions between presidential power and the central bank’s need to stay neutral from politics. As the case heats up, it could reshape how leaders handle key economic roles.
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