Federal Reserve Governor Lisa Cook urged the Supreme Court Thursday to reject President Trump’s effort to remove her from office, warning that such a move would undermine central bank independence and destabilize financial markets.
In a new filing, Cook’s lawyers argued, “Granting the President’s request for immediate relief to alter the status quo would sound the death knell for the central-bank independence that has helped make the United States’ economy the strongest in the world.” They emphasized that there must be some “meaningful check” on the president’s power to dismiss a governor, noting that without it, “any president could remove any governor based on any charge of wrongdoing, however flawed.”
The filing responded to the Justice Department’s Sept. 18 emergency request to lift a federal judge’s order that blocked Trump from immediately firing Cook over alleged mortgage fraud allegations. Cook’s attorneys warned that a Supreme Court ruling in Trump’s favor could trigger “dire repercussions” for financial markets and create potential “chaos and disruption.” They also highlighted the possibility of another governor being confirmed during ongoing litigation, which could lead to a court having to determine which individual rightfully holds the seat.
Earlier Thursday, a group of former Fed chairs—including Ben Bernanke and Janet Yellen—filed an amicus brief supporting Cook. They wrote that “allowing the government to remove a member of the Board of Governors for the first time in the Nation’s history, while under the cloud of legal challenge, will erode public confidence in the Fed’s independence and threaten the long-term stability of our economy.”
The Supreme Court battle follows U.S. District Judge Jia Cobb’s Sept. 9 decision blocking Trump from firing Cook, ruling that the alleged mortgage fraud claims did not meet the Federal Reserve Act’s “for cause” standard required to remove a central bank official. The White House’s appeal to the D.C. Circuit was similarly rejected in a 2-1 ruling on Sept. 15.
Cook, who participated in the Fed’s policy meeting last week, voted to cut rates by 25 basis points.
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