On June 29, 2026, the US Supreme Court decided Trump v. Cook, No. 25A312, holding that a federal court's injunction preventing the President from firing a Governor of the Federal Reserve remains in effect pending the conclusion of litigation over the attempted removal.
According to statute 12 U.S.C. § 242, the Federal Reserve's Governors serve 14-year terms and may be removed "for cause by the President." Lisa Cook's term as a Federal Reserve Governor was set to expire in 2038. However, in August 2025, President Trump issued a letter purporting to fire Cook for cause based on a belief that she made false statements on mortgage agreements.
Cook sued to prevent her removal. She alleged that her removal was not "for cause" as required by statute and that she did not receive notice and an opportunity to respond to the charges against her before removal. A federal district court agreed with Cook, issuing a preliminary injunction to prevent the President from removing her. The Court of Appeals upheld the injunction in a split decision, and the Government asked the Supreme Court to stay the injunction.
The Supreme Court held that the district court's injunction may remain in place because the Government is not likely to succeed on the merits. The Court rejected the Government's argument that courts play no role in assessing the validity of a Governor's removal, and it explained that whether "cause" exists in this context depends on the seriousness of the alleged misconduct and the extent of any nexus that may exist to the Governor's duties. It further explained that Cook was at least entitled to some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due. Because Cook did not receive such process, the Court concluded her removal was "erroneous and void."
Chief Justice Roberts delivered the opinion of the Court, in which Justices Sotomayor, Kagan, Kavanaugh, and Jackson joined in full. Justices Kavanaugh and Jackson filed concurring opinions. Justice Thomas filed a dissenting opinion. Justice Alito filed a dissenting opinion in which Justice Gorsuch joined. Justice Barrett filed a dissenting opinion.
