Story perspectives

Trump's Bid to Remove Fed Governor Faces Legal Setback

9/26/2025

Summary

Cook Resists Removal

Federal Reserve Governor Lisa Cook's team says Trump's bid to remove her risks Fed independence.
They say Cook's mortgage-fraud claims are insufficient grounds for removal under Federal Reserve Act.
An appeals court ruled Cook lacked due process, upholding a lower court block.
Eighteen former Federal Reserve officials urged the Supreme Court to reject Trump's bid to remove Cook, citing precedent.

History

Historical Context

The Banking Act of 1935 established the Federal Reserve's independence from political influence, a crucial response to the economic turmoil of the Great Depression, which began in 1929 and led to widespread bank failures. This independence is vital for effective monetary policy, as seen in the ongoing tensions surrounding political appointments, such as Lisa Cook's potential removal, which raises concerns about the Fed's autonomy and public trust.

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Cook Resists Removal

Federal Reserve Governor Lisa Cook's team says Trump's bid to remove her risks Fed independence.
They say Cook's mortgage-fraud claims are insufficient grounds for removal under Federal Reserve Act.
An appeals court ruled Cook lacked due process, upholding a lower court block.
Eighteen former Federal Reserve officials urged the Supreme Court to reject Trump's bid to remove Cook, citing precedent.

1 / 2