The U.S. Supreme Court has announced that it will hear a significant case, Trump v. Cook, on January 21, 2026. This case revolves around the authority of a president to remove members from the Federal Reserve Board of Governors, specifically targeting the recent dismissal of Federal Reserve Governor Lisa D. Cook.
Cook, who was appointed by former President Joe Biden to a 14-year tenure, has faced allegations of wrongdoing. These concerns were raised by Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA), who accused her of manipulating mortgage applications in several states. The accusations suggest that she falsely recorded properties as primary residences to obtain better loan rates.
In response to her firing, Cook has contested the validity of her dismissal, citing the Federal Reserve Act’s stipulations for removal, which require “cause” such as inefficiency or malfeasance. If the claims against her are validated, it could indeed qualify as malfeasance, highlighting a serious ethical breach.
A federal district court had previously granted her a preliminary injunction, blocking the President from proceeding with her removal. The D.C. Circuit Court of Appeals upheld this decision. However, the Trump administration has called upon the Supreme Court to clarify the president’s authority in this matter.
The administration argues that the president retains broad powers under Article II to dismiss executive officers, even those in independent agencies like the Federal Reserve. They believe the allegations regarding Cook’s mortgage applications are substantial enough to justify her removal.
On the opposing side, Cook’s legal team contends that Congress intended to limit presidential power in order to protect monetary policy from political influence. As proceedings continue, Cook remains on the Federal Reserve Board.
The case may set a precedent regarding executive authority and the boundaries of presidential power in governmental agencies.
