Lisa Cook: a for-cause firing without cause, blocked twice, upheld by the Supreme Court

Supreme Court held 5-4 that Cook may remain in her position while her removal challenge proceeds, the president's attempted for-cause firing has been blocked at every stage to date

On August 20, 2025, Trump demanded Federal Reserve Governor Lisa Cook resign after FHFA Director William Pulte publicly alleged she had claimed two different properties as her primary residence in 2021 to obtain favorable mortgage terms, the same theory subsequently used against Letitia James (WLE-02) and examined against Adam Schiff (WLE-06). On August 25, Trump attempted to fire Cook 'for cause'; Cook denied wrongdoing and sued Trump, the Fed Board, and Chair Powell on August 28, arguing the president lacked authority to remove her, and that presidents may remove Fed governors only 'for cause' meaning gross misconduct or a legal violation, not an untested allegation.

District Judge Jia Cobb issued a preliminary injunction on September 9, 2025, finding Cook had made 'a strong showing that her purported removal was done in violation of the Federal Reserve Act's for cause provision'; the D.C. Circuit rejected the administration's emergency appeal on September 15, and on October 1 the Supreme Court deferred action on the government's application and set oral argument, leaving Cook in office meanwhile. At a September 29 hearing, Cook's legal team accused the administration of waging 'an obvious smear campaign' built on 'vague, unsubstantiated allegations.'

On June 29, 2026, the Supreme Court ruled 5-4 that Cook may remain in her position while her full legal challenge proceeds, the same week Fed Chair Powell was separately fighting his own DOJ subpoenas (WLE-08). Powell called the Cook litigation 'perhaps the most important legal case in the Fed's 113-year history.'

Documented

Supreme Court ruled 5-4 for Cook, June 29, 2026; litigation over the underlying firing continues

Firing attempt 2025-08-25; District Court injunction 2025-09-09; Circuit Court rejection 2025-09-15; SCOTUS deferred action and set argument 2025-10-01; oral arguments 2026-01-21; SCOTUS ruling 2026-06-29