The US Supreme Court has blocked Trump’s request to remove Fed Governor Lisa Cook

The US Supreme Court has blocked President Donald Trump’s request to remove Federal Reserve Governor Lisa Cook, maintaining the current balance of the Fed Board as the administration continues to push for lower interest rates.

According to the Court’s decision of 5-4, the judges rejected Trump’s attempt to dismiss Cook regarding the alleged mortgage fraud, deciding that the legal dispute should continue under the appropriate standards rather than allowing the president to remove the governor of the Fed without judicial review.

The court says that the power to remove remains subject to judicial review

Writing for the majority, Chief Justice John Roberts said that accepting the executive position would allow the president to fire the governor of the Federal Reserve at any time and for any reason, reducing the legal protection of “for cause” to much more than employment.

Roberts added that the Court was not ruling that Trump ultimately had legal grounds to remove Cook. Instead, he said the decision speaks to the legal framework lower courts should apply before reaching that question.

“To be clear, the ultimate question of whether the President can remove Cook for cause will depend on the underlying facts,” Roberts wrote. “In this view, we have not extrapolated the facts, as they have not been discovered or analyzed under the appropriate legal standards.”

The decision keeps Cook on the Federal Reserve Board while the trial continues, leaving Trump without multiple governors despite changes elsewhere in the central bank’s leadership.

The ruling complicates Trump’s push for lower interest rates

Shortly after the decision, Trump responded to Truth Social by saying that the Supreme Court returned the case on procedural grounds rather than ruling on the merits. He added:

“We will take appropriate action immediately to make sure that someone who has committed a crime will not make important decisions about the welfare of the United States of America!”

The decision also comes as Trump continues to call for low interest rates. Although he nominated Kevin Warsh to take over from former Fed Chairman Jerome Powell, Trump previously said he would not pressure Warsh on monetary policy and would leave interest rate decisions to the Federal Reserve.

During his Senate hearing in April, Warsh reinforced that position by telling the Senate Banking Committee that Trump never asked him to predetermine, commit, or decide any interest rate action before taking office. He added that he would never agree to such a request.

Even under Warsh’s leadership, the Federal Reserve kept interest rates unchanged at its June FOMC meeting while maintaining a cautious stance on inflation, stressing that policy decisions continue to be driven by economic conditions rather than the preferences of the White House.

Cook’s continued presence on the Board means Trump still lacks the majority needed to reshape the direction of the Federal Reserve’s policy by appointment alone, making future interest rate decisions dependent on votes within the central bank.

The decision comes as inflation remains a key concern for policymakers. As crypto.news previously reported, the Fed left interest rates unchanged in June despite the economic forecasts of many officials.

Separate reporting by crypto.news also noted that the latest reading of Personal Consumption Expenditures reached 4.1%, its highest level since 2023. Against that, Bank of America has predicted three rate hikes to begin later this year, while Polymarket currently offers a 53% chance that the Federal Reserve will raise rates before the end of the year.