*The Supreme Court appeared unconvinced on Wednesday that President Donald Trump had the authority to dismiss Federal Reserve Governor Lisa Cook, as pointed questioning from both conservative and liberal justices dominated oral arguments. By the end of the two-hour session, the focus had shifted toward how the court might rule in Cook’s favor rather than whether it would do so at all, CNN reports.
The dispute stems from Trump’s August 2025 decision to fire Cook, marking the first time in the Federal Reserve’s 100-year history that a president has attempted to remove a sitting member of the Board of Governors. Trump alleged Cook committed mortgage fraud by listing two different properties as her primary residence within a short period, citing “sufficient cause” for her dismissal. Cook has denied the accusations and refused to resign, arguing that the law does not give the president unilateral authority to remove her.
The Federal Reserve Act permits removal of governors only “for cause,” a phrase that remains undefined in the statute. That ambiguity has fueled what legal experts describe as a major constitutional showdown involving presidential authority and economic governance. Cook’s attorney, Abbe David Lowell, called the firing unlawful, stating, “President Trump has no authority to remove Federal Reserve Governor Lisa Cook.”
Several conservative justices expressed notable concern with the administration’s position. Justice Brett Kavanaugh questioned whether allowing the White House to define “cause” without judicial oversight could invite retaliation by future presidents. “Once these tools are unleashed,” Kavanaugh said, “they’re used by both sides.”
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Chief Justice John Roberts also appeared skeptical of the allegations, pushing back on the administration’s characterization of Cook’s mortgage paperwork. “Well, I mean, I suppose we can debate that, how significant it is in a stack of papers you have to fill out when you’re buying real estate,” Roberts remarked. Justice Samuel Alito, while critical of lower court rulings favoring Cook, suggested the firing itself had been “handled in a very cursory manner.”
When Cook’s attorney, Paul Clement, addressed the court, the justices’ questions suggested a narrower path forward. Kavanaugh indicated that affirming lower court findings that Trump violated Cook’s due process rights might be the “simplest” resolution, potentially keeping her in office while broader legal issues continue to unfold.
MORE NEWS ON EURWEB.COM: Trump Fires Federal Reserve Governor Lisa Cook, Prompting Historic Legal Showdown | VIDEO
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