President Donald Trump’s abrupt dismissal of Federal Reserve Governor Lisa Cook late Monday has sparked a fresh legal and political showdown over the independence of the nation’s central bank.
Trump announced the firing in a letter posted to social media, accusing Cook of mortgage fraud—allegations that remain unsubstantiated. The Justice Department confirmed it will review the claims, which were first raised by Federal Housing Finance Agency Director Bill Pulte and prosecutor Ed Martin. Cook has not been charged with wrongdoing and vowed to fight her dismissal.
The move escalates Trump’s yearlong campaign to expand executive power, a strategy that has already drawn multiple Supreme Court rulings. While the conservative-led court has repeatedly upheld Trump’s authority to remove leaders of independent agencies, it has carved out exceptions for the Federal Reserve, calling it a “uniquely structured” body historically shielded from White House interference.
Legal experts say the president’s action could test the boundaries of those rulings. “What counts as ‘cause,’ who decides, and what process is required are now central questions,” said University of Chicago law professor Jennifer Nou. “Given the pretextual basis, what is clear is that Trump has violated a strong norm against firing Federal Reserve board members.”
Since retaking office in January, Trump has pushed the limits of presidential authority, successfully ousting officials from the Consumer Product Safety Commission and two federal labor agencies despite statutory protections. But in a May decision, the court specifically distinguished the Fed from those agencies, rejecting concerns that its independence would be next to fall.
Trump’s latest move attempts to sidestep that precedent by framing Cook’s removal as being “for cause.” In his letter, he wrote that “sufficient cause” justified her dismissal, language echoing statutory requirements.
Some scholars view the rationale as a legal maneuver. “The firing of Lisa Cook ‘for cause’ may be pretextual but is not obviously illegal,” said Harvard law professor Jack Goldsmith.
Cook, appointed in 2022, rejected Trump’s claims and refused to resign. “President Trump purported to fire me ‘for cause’ when no cause exists under the law,” she said. “I will continue to carry out my duties to help the American economy.”
