A majority of the court said that Trump failed to provide notice and an opportunity for Cook to respond to her termination.
The Supreme Court has blocked President Donald Trump’s removal of Federal Reserve Board member Lisa Cook, marking a tentative loss for the administration as litigation unfolds in lower courts.
In an opinion on June 29, the court rejected Trump’s arguments that he could avoid judicial review of the firing.
The ruling was made months after oral arguments on Jan. 21, when the justices seemed reluctant to allow Cook’s removal. A federal judge reinstated Cook last year on the basis that Trump didn’t give her a notice and hearing before removing her.
In a 5–4 decision, the court said that “Cook was entitled to notice and some opportunity to respond before her termination.”
Trump maintained that he followed the terms of the Federal Reserve Act, which allows presidents to remove members “for cause.”
Chief Justice John Roberts wrote the majority opinion, stating that the president had misinterpreted his power.
“The Government raises three alternative arguments: that a removal for cause under the statute is not judicially reviewable; that even if the removal is reviewable, cause is a low bar satisfied by any concerns about a Governor’s conduct, ability, fitness, or competence; and that even if the Government did not show cause to remove Cook, she is nevertheless not entitled to remain in office while litigation over the removal is pending,” he said.
“We disagree on all three points.”
He added that accepting Trump’s arguments would turn the “for cause” protection into “at-will employment,” which was “out of step with the statute Congress enacted and our Nation’s tradition of central banking protected from political interference.”
Justices Clarence Thomas, Samuel Alito, and Amy Coney Barrett filed dissenting opinions. Alito’s was joined by Justice Neil Gorsuch.
Trump indicated he would continue to fight the issue.
“The Cook Lawsuit, having to do with her suitability in sitting on the Board of the Federal Reserve, was sent back by the Supreme Court on a strictly procedural basis, we will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!” he said on TruthSocial.
