Supreme court rules Trump’s firing of Lisa Cook from Fed was unconstitutional

Lauren Aratani

Lauren Aratani

The supreme court has ruled that Donald Trump’s firing of a Federal Reserve governor was unconstitutional, in a landmark ruling that limits a president’s authority over the central bank.

In its opinion, the court said that Trump does not have the constitutional authority to fire a Fed governor without cause.

The case was centered on Lisa Cook, a Biden appointee whose 14-year term on the Federal Reserve board of governors is scheduled to expire in 2038. Cook is the first Black woman to serve on the Fed’s board.

Last August, on social media, Trump abruptly fired Cook. The president claimed he had evidence that Cook committed mortgage fraud, an illegal practice where a homebuyer lists a second property as a primary residence to get a better mortgage rate. Cook denied the allegations and sued the Trump administration, saying it fired her without cause.

Lisa Cook looks on outside the supreme court on 21 January.
Lisa Cook looks on outside the supreme court on 21 January. Photograph: Nathan Howard/Reuters

The justices’ protection over the Fed decision is a departure from how the court has handled Trump in his second term, allowing the president broad power to carry out his agenda without congressional approval.

The court allowed Trump to remove a Democratic-appointed member of the National Labor Relations Board (NLRB), leaving the powerful union board without a quorum needed to decide on labor disputes. The court also stripped lower district courts of their power to issue nationwide injunctions, which was often used to block Trump in his first administration, and stayed a lower court’s ruling that restricted Immigration and Custom Enforcement’s (ICE) from using race and ethnicity as the basis for reasonable suspicion in immigration enforcement.

But Trump has finally met his limit. The ruling is a major win for the central bank, which has spent the last year under attack from the White House.

Here’s Lauren’s full report:

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Key events

Supreme court rules Trump can fire leaders of independent agencies

Michael Sainato

The supreme court has ruled that Donald Trump can fire leaders of independent agencies or commissions, ending 90 years of court precedent that curbs executive power.

The vote in the case of Trump v Slaughter is 6-3, with dissents from Justices Sonia Sotomayor, Ketanji Brown Jackson and Elena Kagan.

The case was focused on the White House’s March 2025 firing of Federal Trade Commission member Rebecca Slaughter. Trump fired Slaughter over email, telling her that keeping her as a commissioner would be “inconsistent with [the] administration’s priorities”.

Upon her termination, Slaughter sued the Trump administration, saying she was fired without cause, and a lower court ruled for her reinstatement.

Rebecca Slaughter in Washington DC on 13 July 2023. Photograph: Al Drago/Bloomberg via Getty Images

In challenging Slaughter’s suit, the White House argued the court should overturn Humphrey’s Executor v United States, a landmark ruling from 1935 where the supreme court ruled that the president unlawfully fired a member of the Federal Trade Commission (FTC), limiting the president’s power over independent agencies.

The FTC is tasked with enforcing consumer protection and anti-trust laws. The agency is structured with five bipartisan commissioners, and no more than three can come from the same party. Congress placed restrictions on the hiring and firing of commissioners in an effort to insulate the agency from partisan politics. The Trump administration asked the court of appeals to put the ruling on hold while it appealed, but was denied.

“The government is not likely to succeed on appeal because any ruling in its favor from this court would have to defy binding, on-point, and repeatedly preserved supreme court precedent,” two appeals judges wrote in the majority opinion.

The Trump administration then went to the supreme court, requesting a stay of the order while the government appeals. The supreme court voted to grant the stay of the order in September 2025, with three justices dissenting.

Overruling Humphrey’s executor, former government officials have warned, would undermine the independence of federal agencies.

“Eliminating these removal protections would jeopardize all facets of agency independence, as agency leaders would be reluctant to engage in regulatory or enforcement actions – or even day-to-day agency decision-making – without coordinating with the White House for fear of termination,” wrote Lauren McFerran, former National Labor Relations Board (NLRB) chair, and Celine McNicholas, a former official at the NLRB, in an Economic Policy Institute report from October 2025.

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