Supreme Court weighs Trump's firing of the Fed's Lisa Cook by social media

• Trump posted a termination letter on Truth Social on August 25, 2025, based on mortgage fraud allegations that Cook denies and her lawyers say are a pretext related to her dovish monetary policy stance
• A district court judge blocked the firing in September, ruling Trump's scattered social media posts did not provide adequate due process, which typically requires a 'judicial-type hearing' with evidence and testimony
• The Trump administration argues Cook had sufficient notice from an August 20 post demanding her resignation and five days to respond before the termination letter, and that government officers have no 'property right' to their positions under due process protections

Supreme Court to Hear Trump's Challenge to Fed Governor Lisa Cook Firing

The Supreme Court will hear arguments Wednesday on President Trump's unprecedented attempt to fire Federal Reserve Governor Lisa Cook via social media, a case with major implications for central bank independence.

Key Facts

On August 25, Trump posted a termination letter on Truth Social after 8 p.m., informing Cook "you are hereby removed" from her Fed governor position. No president has ousted a Fed governor since the central bank's founding in 1913.

Trump based the firing on mortgage fraud allegations from Federal Housing Finance Agency Director Bill Pulte. Cook, confirmed in 2022 as the first Black woman Fed governor, denies the allegations and claims they are a pretext for her dovish monetary policy stance, which favors keeping interest rates lower.

Legal Issues

Cook argues Trump violated her Fifth Amendment due process rights by firing her through social media without prior notice or opportunity to respond. Lower courts agreed, with U.S. District Judge Jia Cobb blocking the removal in September and the D.C. Circuit Court refusing to lift that block.

The Federal Reserve Act allows presidents to remove governors only "for cause," though the term lacks clear definition or procedural requirements.

Market Implications

The case threatens Fed independence at a critical juncture. Trump has repeatedly demanded lower interest rates and criticized Fed Chair Jerome Powell. The administration recently opened an investigation into Powell, which he also called a pretext for political control over monetary policy.

The Supreme Court's 6-3 conservative majority could decide on narrow procedural grounds or address broader questions about presidential power over the central bank. A ruling against Cook could fundamentally alter the Fed's political insulation and independence in setting monetary policy.