The U.S. Supreme Court will hear arguments Wednesday in Trump v. Cook, a case that could reshape presidential authority over federal agencies. The justices will determine whether President Donald Trump had the legal right to fire Lisa Cook, a Federal Reserve Board governor appointed by President Joe Biden in 2023.
Trump removed Cook in August 2025, citing mortgage fraud. He accused Cook of listing properties in both Michigan and Georgia as her “primary residence” for the same year, calling it “gross negligence in financial transactions” and questioning her competence as a financial regulator.
Cook sued to challenge the termination, and a U.S. District Court judge temporarily reinstated her. Judge Jia Cobb compared Cook’s rights to those of a lower-level civil servant, stating that she was entitled to a hearing before being dismissed. Cobb also argued that removal under the Federal Reserve Act must be tied to misconduct committed during her term in office, not prior actions.
The Trump administration argues that the law only requires “cause” for dismissal and does not mandate hearings or notice. In its Supreme Court petition, the administration warned that Cobb’s ruling could interfere with sensitive executive decision-making.
The justices are not expected to rule on Cook’s guilt or innocence but will likely focus on the constitutional balance of power between the presidency and independent federal boards. A ruling in Trump’s favor could override long-standing precedent dating back to President Franklin D. Roosevelt’s failed attempt to remove federal board members without congressional constraints.
The Court is also weighing Trump v. Slaughter, a parallel case involving Trump’s removal of FTC Commissioner Rebecca Slaughter. A ruling in either case could expand presidential authority over regulatory bodies, including the Federal Reserve and the FTC.
The outcome of Trump v. Cook comes amid growing tension between President Trump and Federal Reserve Chair Jerome Powell, who is under DOJ investigation for his role in interest rate decisions. Trump has publicly pressured Powell to lower rates, while Powell has insisted the Fed must remain independent from political influence.
A final decision in the case is expected by July.
