Facts of the Case
In August 2025, President Trump issued a letter removing Federal Reserve Governor Lisa Cook from office, citing allegations that she had committed mortgage fraud before joining the Board, without giving her notice or an opportunity to respond. Cook sued, arguing the removal violated the Federal Reserve Act's for-cause removal requirement and her Fifth Amendment due process rights, and the district court preliminarily enjoined her removal. After the D.C. Circuit denied a stay, the government filed an emergency application with the Supreme Court, which deferred ruling and set the application for full oral argument.
Questions
Should the Court stay a district court injunction preventing the President from removing a member of the Federal Reserve Board of Governors "for cause" based on pre-appointment conduct without prior notice or a hearing?
Conclusions
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On June 29, 2026, the U.S. Supreme Court held 5-4 in Trump v. Cook that for-cause removal protections for Federal Reserve governors are constitutional and require the President to provide a governor with notice and a hearing before removal, denying the government's application to stay the injunction keeping Governor Cook in office.
From the Courthouse Steps: Trump v. Slaughter and Trump v. Cook
In Trump v. Slaughter, the Supreme Court held 6-3 that the Federal Trade Commission's (FTC)...
