The Supreme Court ruled on June 29, 2026, that former President Donald Trump's firing of Federal Reserve Governor Lisa Cook in 2024 was unconstitutional, in a landmark decision that limits presidential power over independent agencies. The 6-3 decision, written by Chief Justice John Roberts, held that the Federal Reserve Act's protections for board members—allowing removal only for cause—are constitutional and that Trump's attempt to remove Cook without cause violated separation of powers.
Lisa Cook, an economist and the first Black woman to serve on the Federal Reserve Board, was appointed by President Joe Biden in 2022. Trump fired her in 2024 shortly after taking office, citing policy disagreements. Cook challenged the firing, arguing that the Federal Reserve Act protects governors from removal except for inefficiency, neglect of duty, or malfeasance in office.
The ruling is a significant check on executive authority, reinforcing the independence of the Federal Reserve from political pressure. The court found that the Fed's quasi-judicial functions and need for monetary policy stability justify the removal protections. The decision does not affect other independent agencies, but legal experts say it sets a precedent for similar challenges.
In a separate ruling, the Supreme Court also rejected Trump's appeal in the E. Jean Carroll defamation case, allowing a $5 million judgment against him to stand. Additionally, the court upheld a lower court decision blocking a Trump administration rule that would have restricted mail-in ballot counting in several swing states.
