Above, Lisa Cook

President Donald Trump’s attempted firing of Federal Reserve Governor Lisa Cook appears to have hit a roadblock. The case was heard before the Supreme Court Wednesday and media reports indicate, based on the oral arguments and questions posed by the justices, the Court seems unlikely to allow the firing to proceed. The actual decision will likely not be handed down until later, with the Supreme Court usually handing down decisions by June.

In August 2025, Federal Housing Finance Agency (FHFA) Director Bill Pulte accused Cook of mortgage fraud, specifically that she had misrepresented two homes as a “primary residence” in order to receive better loan conditions. Cook has denied the allegation and the truth of them is still up in the air, but Trump used the charge as grounds for Cook’s firing, which he announced publicly on Truth Social.

Cook’s case is an avatar of a larger issue: The independence of the Federal Reserve itself. Since taking office in 2025, Trump has pushed the Fed to cut interest rates; his attempted firing of Cook has been cited by his critics as a key example of him trying to exert more control over the Fed and its decision-making. Fed Chair Jerome Powell, a frequent target of Trump’s criticism, is also now facing an investigation from the Department of Justice (DOJ) which he claims is an effort by Trump to try and exert more influence over the Fed. In a rare show of public support, Powell attended the Supreme Court’s hearing on the Cook case Wednesday. 

According to media reports, at the hearing, the justices—even the conservative justices and/or ones appointed by Trump—seemed skeptical about Cook’s firing meeting the “just cause” threshold and concerned about implications for Fed independence were she to be fired. Justice Brett Kavanaugh, appointed by Trump in the President’s first term, argued that it would “shatter” Fed independence if a President is allowed to themselves define what constitutes “just cause” for firing an official. The Wall Street Journal and CNN both reported that at least some of the justices appeared frustrated with the administration’s emergency fast-tracking of the case to them before all the facts of the case were clearly defined. 

While the Court seems likely to rule in Cook’s favor, the particulars of their decision have yet to be decided. The Court has previously ruled, though, that Cook can remain on the Fed board while their decision is awaited.

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