Trump v. Cook

The Federal Reserve System, the central bank of the United States, was structured to ensure independence from the politics of the federal government. The reserve consisted of 12 privately owned regional banks and two national governing bodies, one of which was the seven-member board of governors. The governors were appointed by the president and confirmed by the Senate. They served 14-year terms and could be removed early only by the president for cause. Lisa Cook began a 14-year term in 2023 under then President Joe Biden. In 2025, accusations arose that Cook committed mortgage fraud in 2021. President Donald Trump immediately issued a social-media post calling for Cook’s resignation. Three days later, Trump purported to fire Cook for cause, claiming he had reason to believe Cook might have falsified mortgage documents and that such conduct undermined Cook’s integrity. Cook sued Trump, arguing that Trump lacked proper cause for her removal and had failed to provide Cook with proper notice and opportunity to respond. The district court issued a preliminary injunction entitling Cook to remain in office while the litigation was pending. The preliminary injunction was based on a finding that Cook was likely to succeed on the merits because “for cause” referred only to a governor’s in-office conduct and due process required that Cook receive notice and a hearing before termination. The court of appeals upheld the injunction. Trump applied to the Supreme Court for a stay of the injunction, which would have allowed Cook’s removal during the litigation.