The US Supreme Court heard arguments over President Trump’s effort to remove Federal Reserve Governor Lisa Cook and appeared skeptical that the White House can immediately oust her. Several justices raised concerns that the administration’s reading of presidential removal power could weaken the Federal Reserve’s independence, a foundational feature of US monetary policy watched closely by markets and businesses. The case is unusual because no president has previously tried to fire a Fed official since the central bank’s creation, making the court’s ruling potentially consequential for how investors assess policy stability and institutional checks and balances.

Highlights:

• Judicial review: A central flashpoint was the administration’s argument that courts should not be able to review the President’s decision to fire a Fed governor, a stance multiple justices questioned during the hearing.
• Cause dispute: The administration has cited what it says were discrepancies in Cook’s mortgage applications as the basis for trying to remove her, which Cook disputes as she fights to keep her seat.
• Powell backdrop: The argument unfolded amid a separate Justice Department criminal investigation into Federal Reserve Chair Jerome Powell’s handling of Fed office renovations, which Powell has described as a “pretext” to pressure the central bank.
• Notable courtroom: Powell attended the arguments along with Cook and former Fed chair Ben Bernanke, underscoring the case’s institutional stakes for the central bank.
• Reserve currency: Commentators noted the outcome could matter for confidence in Fed independence, a factor often tied to the dollar’s role as the world’s reserve currency and to long-run inflation expectations.

Your position that there's no judicial review, no process required, no remedy available, very low bar for cause, that the president alone determines — and that would weaken, if not shatter, the independence of the Federal Reserve - Justice Brett Kavanaugh

Perspectives:

• Trump administration: The administration argues the President should have authority to remove a Fed governor and has asked the court to allow Cook’s firing to take effect immediately. (The New York Times)
• Lisa Cook: Cook is challenging the attempted removal in court and has been allowed by lower courts to keep her position while the case proceeds. (Business Insider)
• Supreme Court justices: Justices from both wings pressed the administration on whether its approach would undercut the Fed’s independence and bypass due-process style constraints. (BBC News)
• Fed independence advocates: Experts cited in coverage warned that allowing a president to fire a sitting Fed governor could erode the central bank’s ability to set monetary policy without political pressure. (NPR)

Sources:

• It looks like the Supreme Court won't let Trump fire Lisa Cook from the Fed - qz.com
• Supreme Court expresses scepticism over Trump’s attempt to sack Lisa Cook - ft.com
• Supreme Court sceptical of Trump firing of Lisa Cook - bbc.com
• Supreme Court Seems Poised to Reject Trump’s Attempt to Immediately Fire a Fed Governor - nytimes.com
• Trump Power Over Fed Tested as Supreme Court Hears Cook Case - bloomberg.com
• Live Updates: Supreme Court Considers Trump's Attempt to Fire Lisa Cook from Fed - The New York Times - google.com
• Supreme Court appears wary of allowing Trump to fire Fed's Cook in closely watched case - npr.org
• Supreme Court justices expressed frustration with Trump's handling of the Lisa Cook case - businessinsider.com
• US supreme court appears skeptical of Trump’s bid to oust Lisa Cook from Fed board - theguardian.com
• Supreme Court takes up politically charged case with independence of the Federal Reserve at stake - abcnews.go.com