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Central BanksMediumUpdated•Originally published 29 June 2026•Updated 4 July 2026•
1 min read

Supreme Court blocks Trump's firing of Fed Governor Lisa Cook for now

Collage of Donald Trump and Lisa Cook with the Supreme Court and Federal Reserve seal in an orange color palette.

Key Facts

1The Supreme Court ruled 5-4 that President Trump's attempt to fire Fed Governor Lisa Cook was procedurally invalid, allowing her to stay while challenging the removal.
2The decision was based on lack of due process, as the firing was done via tweet without notice or deadline to respond.
3The ruling strengthens Fed independence and leaves open the possibility of Cook facing mortgage fraud allegations in court.

The U.S. Supreme Court ruled 5-4 on Monday that President Trump's attempt to fire Federal Reserve Governor Lisa Cook was procedurally invalid, allowing her to remain on the board while her legal challenge proceeds. The decision was based on lack of due process, as the firing was done via tweet without notice or an opportunity to respond. The ruling leaves open the possibility of Cook facing mortgage fraud allegations in lower courts.

This ruling comes amid growing political pressure on central bank independence globally. It is seen as a victory for constitutional principles protecting the Fed from direct political interference, bolstering market confidence in the bank's ability to conduct monetary policy independently. Legal experts have welcomed the decision, emphasizing the importance of procedural due process in any disciplinary action against board members.

As the case continues in lower courts, markets will focus on upcoming hearings regarding the fraud allegations against Cook. Investors are also watching the next Federal Open Market Committee (FOMC) meeting in July, where the Fed is expected to hold rates steady amid legal uncertainty. Additionally, upcoming inflation and employment data will be key for assessing the monetary policy path.