The Supreme Court is expected to hand President Donald Trump a rare defeat in his attempt to fire Federal Reserve officials. In May 2025, the Court ruled that the Fed's leaders are exempt from presidential control, citing their unique structure and history as quasi-private entities. This decision was made in the case of Trump v. Wilcox.
Now, in another case, Trump is trying to fire Lisa Cook, a Biden appointee to the Fed's Board of Governors. The question at hand is whether the president can fire someone "for cause" - that is, without just reason. However, most of the justices appear likely to reject Trump's argument, as they believe that he has not shown sufficient evidence to support his claims.
In particular, Justice John Roberts expressed skepticism about Sauer's claim that Cook engaged in "deceit," asking whether it was fair to apply this word to an inadvertent mistake. Justice Brett Kavanaugh warned Sauer that if the president can fire a Fed governor because they discover a minor paperwork error, it would destroy the Federal Reserve's independence and lead to a "search and destroy" operation.
Justice Amy Coney Barrett appeared to be looking for a way to reject Trump's emergency request without having to decide any of the harder questions in the case. Meanwhile, Justice Ketanji Brown Jackson suggested that the Court might avoid deciding these issues until the lower courts have more time to consider the case.
It is worth noting that if Cook prevails in this case, it may have significant implications for the Federal Reserve's ability to set interest rates and maintain economic stability. The Fed has the power to inject "cocaine" into the economy - giving it a temporary high at the price of much greater economic pain down the road.
Ultimately, the Court's decision will depend on its interpretation of the law and its willingness to challenge Trump's attempts to exert control over the Federal Reserve. If the justices side with Cook, it could be seen as a victory for the independence of the Fed and a blow to Trump's efforts to manipulate the economy for political gain.
Now, in another case, Trump is trying to fire Lisa Cook, a Biden appointee to the Fed's Board of Governors. The question at hand is whether the president can fire someone "for cause" - that is, without just reason. However, most of the justices appear likely to reject Trump's argument, as they believe that he has not shown sufficient evidence to support his claims.
In particular, Justice John Roberts expressed skepticism about Sauer's claim that Cook engaged in "deceit," asking whether it was fair to apply this word to an inadvertent mistake. Justice Brett Kavanaugh warned Sauer that if the president can fire a Fed governor because they discover a minor paperwork error, it would destroy the Federal Reserve's independence and lead to a "search and destroy" operation.
Justice Amy Coney Barrett appeared to be looking for a way to reject Trump's emergency request without having to decide any of the harder questions in the case. Meanwhile, Justice Ketanji Brown Jackson suggested that the Court might avoid deciding these issues until the lower courts have more time to consider the case.
It is worth noting that if Cook prevails in this case, it may have significant implications for the Federal Reserve's ability to set interest rates and maintain economic stability. The Fed has the power to inject "cocaine" into the economy - giving it a temporary high at the price of much greater economic pain down the road.
Ultimately, the Court's decision will depend on its interpretation of the law and its willingness to challenge Trump's attempts to exert control over the Federal Reserve. If the justices side with Cook, it could be seen as a victory for the independence of the Fed and a blow to Trump's efforts to manipulate the economy for political gain.