The U.S. Supreme Court ruled that Donald Trump’s order to remove Federal Reserve Governor Lisa Cook was unconstitutional and allowed her to remain in office during the mortgage fraud case proceedings.
On Monday, 29 Jun 2026 GMT+7, the U.S. Supreme Court rejected Donald Trump's attempt to immediately remove the Federal Reserve Governor without proof of wrongdoing, marking a historic decision that limits the president’s power over the central bank.
In a 5-to-4 majority ruling, the Court decided that Lisa Cook could continue as Fed Governor while contesting unproven mortgage fraud allegations brought by officials in the Trump administration.
“The Court ruled narrowly that the President failed to provide due process protections that (Lisa) Cook is entitled to under the law, and without such protections, she cannot adequately challenge the allegations the President filed against her,” the justices stated.
The case centers on Lisa Cook, appointed by Joe Biden, whose 14-year term on the Federal Reserve Board is set to expire in 2038. She is the first Black woman to serve on the Fed's Board of Governors.
In August last year, Trump abruptly announced Cook’s removal via social media, alleging he had evidence she engaged in mortgage fraud—specifically, misrepresenting a second property as a primary residence to obtain better mortgage interest rates, an illegal practice.
Cook denied the allegations and filed a lawsuit against the Trump administration, asserting she was removed without just cause.
This judicial decision protecting the Fed marks a departure from how courts previously treated Trump during his second term, when the judiciary often broadly allowed presidential authority to pursue policy agendas without Congressional approval.
On the same day, the Court also ruled that Trump “has the authority” to remove Rebecca Slaughter, a Democratic commissioner of the Federal Trade Commission (FTC), before her term ended.
Additionally, the Court permitted Trump to remove Democratic appointees from the National Labor Relations Board (NLRB), leaving the powerful labor board without the quorum necessary to resolve labor disputes.
The Court further stripped lower district courts of the power to issue nationwide temporary restraining orders, a tool often used to block Trump during his first administration.
Moreover, the Court stayed a lower court order that prevented Immigration and Customs Enforcement (ICE) from using race and ethnicity as factors in establishing reasonable suspicion during immigration enforcement.
However, the Court appears determined to protect the Fed, with this ruling seen as a major victory for the central bank, which has faced White House pressure throughout the past year for resisting cuts to benchmark interest rates demanded by Trump.
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Source:The Guardian