President Donald Trump just took his showdown with the Federal Reserve to the nation’s highest court. On Thursday, the administration asked the U.S. Supreme Court for an emergency green light to remove Federal Reserve Governor Lisa Cook, a move that would be unprecedented since the Fed was created in 1913 and one that has economists warning about a direct hit to the central bank’s independence.
The request seeks to lift a September 9 order from U.S. District Judge Jia Cobb, who temporarily blocked Trump from firing Cook while her lawsuit plays out. Cobb concluded that the administration’s allegations, that Cook committed mortgage fraud before taking office, likely don’t meet the “for cause” removal standard under the Federal Reserve Act because they predate her service. Cook denies wrongdoing.
NEW: Trump administration asks SCOTUS to intervene in the Lisa Cook case pic.twitter.com/h2CzXfqWU0
— Anna Bower (@AnnaBower) September 18, 2025
In the fast-moving legal brawl, a federal appeals court this week also rejected the administration’s bid to oust Cook, finding that she had been denied due process and that the government hadn’t shown grounds to override the district court’s injunction. That set the stage for Thursday’s emergency application to Chief Justice John Roberts and, potentially, a full Supreme Court review. If granted, Trump could immediately remove Cook even as the lower-court case continues.
The Justice Department argues that the president can remove a Fed governor for cause even if the cited conduct occurred prior to taking office, so long as it reflects on fitness and integrity. But Cobb’s order said the “best reading” of the 1913 statute ties “for cause” to misconduct in office, not to alleged actions years earlier. The administration says Cook improperly claimed two properties as primary residences in 2021, potentially securing better loan terms. Reporting has surfaced documents that appear to cut against the fraud claim, describing one home as a second or vacation residence. No charges have been filed.
A loan estimate for an Atlanta home purchased by Federal Reserve Governor Lisa Cook, accused of mortgage fraud by the Trump administration, shows she had declared the property as a ‘vacation home,’ according to a document reviewed by Reuters https://t.co/T283Dc2Jnp pic.twitter.com/MpO2WIxYIS
— Reuters (@Reuters) September 13, 2025
The stakes are enormous. No president has fired a sitting Fed governor, and doing so could scramble markets already on edge about interest-rate policy. Cook, a Biden appointee and the first Black woman to serve as a Fed governor, recently voted to cut rates at a closely watched meeting, a decision that, fairly or not, made her a political lightning rod in an election-season economy. The White House’s push to remove her comes as Trump tests the outer limits of presidential power over nominally independent boards and agencies.
Cook has sued to keep her seat, alleging that the attempted firing is political retaliation cloaked in a flimsy pretext. Her attorneys say tearing down the Fed’s guardrails would chill future policymaking by making governors look over their shoulders at the Oval Office. The appeals court’s rebuke echoed that concern, emphasizing due process and the public interest in shielding monetary policy from raw politics.
What happens next? Roberts can act alone on the emergency request or refer it to the full court. If the justices side with Trump, Cook could be sidelined within hours. If they leave Cobb’s order in place, the case will grind forward while Cook stays in her chair on Constitution Avenue. Either way, the message is clear, the balance of power between the White House and the Fed is on the docket, and Wall Street will be reading every line of the order like it’s a jobs report.
