Washington: The US Supreme Court has ruled that Donald Trump cannot fire the Fed governor at this time. The U.S. Supreme Court ruled Monday that President Donald Trump does not currently have the power to remove Federal Reserve Governor Lisa Cook.

According to Agence Kampuchea Presse, the 5-4 decision did not, however, clarify whether Trump would ever have the power to dismiss Cook or any other Fed member. Under the Federal Reserve Act, the president can only remove a Fed governor for "justifiable cause."

In August 2025, Trump fired Cook, citing allegations of mortgage fraud that allegedly occurred before her appointment to the Fed. Cook immediately challenged the decision in court and ultimately retained her position after a federal district judge and the Supreme Court blocked her removal pending the resolution of her legal challenge.

The Supreme Court heard arguments in the Cook case on January 21. During the hearing, several justices expressed skepticism about the legal basis for the dismissal, also raising concerns that it could weaken the independence of the Federal Reserve.

Although Donald Trump claimed he fired Ms. Cook because of the mortgage fraud allegations, the governor and others believed it was actually because she refused to vote in favor of an interest rate cut. Donald Trump has been calling for federal interest rate cuts from the Fed since the beginning of his second term in the White House.

Ms. Cook, appointed by former President Joe Biden, is the first Black woman to serve as a Fed governor.