Trump’s Removal of Federal Reserve Member Lisa D. Cook

by Hailey Rios

    The Federal Reserve is the “central bank of the United States.” It functions to ensure the effective operation of the U.S. economy and, overall, the public's interest. Lisa D. Cook is a Federal Reserve Board member and has been since 2022. She was appointed by former President Joe Biden and is known for being the first black woman to serve on the board.

Donald J. Trump, the United States current president, sought to remove Lisa D. Cook from the Federal Reserve Board on August 25, 2025. The reason? Trump alleged that Cook made contradictory representations in her mortgage payments before she even joined the Fed. These “contradictory representations” were simply that Cook had two different properties filed as her primary residence. These are unproven allegations, and Cook has not been charged with any crime. As of now, reports state that Cook’s Georgia estate was not referenced as a primary residence but rather a “vacation home.”

    Many argue that if Trump’s removal of Lisa D. Cook is approved by the Supreme Court, it would “signal an end to the Federal Reserve’s independence.” Ever since it was created in 1913 with an act by Congress, independence in the Federal Reserve means that they can set their own interest rates without “interference from Congress or the White House, even if politicians are unhappy with Fed policy.” If direct control from politicians, or even if the president were to aim at the Federal Reserve’s power to set interest rates, the likely outcome would be a higher inflation rate.

     By law, “members of the Fed's seven-person Board of Governors can only be removed "for cause” by a President, which is stated in section 10 of the Federal Reserve Act. No where in the statute is the term “for cause,” explained directly. However, no President has ever pulled this move before, it is unprecedented. On September 9, 2025, “a federal judge in Washington D.C., temporarily blocked President Trump from firing Cook.” The U.S. District Judge Jia Cobb explained that Trump’s reason to fire Cook did not fall under the “for cause” needed in order for it to move forward. Judge Cobb stated that “it concerned conduct that allegedly occurred prior to Cook's Fed appointment and wasn't job-related.” Adding to that, President Trump asserted that “Governor Cook was entitled to no process before her purported removal,” which violates the Fourteenth Amendment. Under the Fourteenth Amendment, the due process clause applies to everyone, and not just to people in a criminal matter.

   Looking from the outside in, Donald Trump is attempting to take control of the Federal Reserve by removing a member who might not agree with his ideology. In other words, the current president of the United States is seeking direct control of the economy. Although some might not be interested in finance or business, if there is an unfair outcome to this dilemma, it will affect everyone.

Works Cited

• Hill, Jon. “Trump Asks High Court to Let Him Remove Fed’s Cook.” Edited by Robert Rudinger and Emily Kokoll, Lexis+® - Sign In | LexisNexis, plus.lexis.com/newsstand/law360/article/2389789/?crid=8d65c106-178a-45d6-8580-5651cf08a0a0. Accessed 25 Sept. 2025.

• Horsley, Scott. “Federal Judge Blocks Trump from Firing Fed Governor Lisa Cook, for Now.” NPR, NPR, 10 Sept. 2025, www.npr.org/2025/09/09/nx-s1-5529281/appeals-court-lisa-cook-federal-reserve-independence-trump.

• “Federal Reserve.” Federal Reserve Board - Home, www.federalreserve.gov/default.htm. Accessed 25 Sept. 2025.

• Sherman, Mark. “Trump Asks Supreme Court for Emergency Order to Remove Lisa Cook from Fed Board.” PBS, Public Broadcasting Service, 18 Sept. 2025, www.pbs.org/newshour/politics/trump-asks-supreme-court-for-emergency-order-to-remove-lisa-cook-from-fed-board.

• “No. 25A312 Donald J. Trump v. Lisa D. Cook.” Supremecourt.Gov, www.supremecourt.gov/DocketPDF/25/25A312/377893/20250925151427957_202 50925%20Cook%20SCOTUS%20Stay%20Opposition.pdf. Accessed 26 Sept. 2025.

• Wessel, David, et al. “Why Is the Federal Reserve Independent, and What Does That Mean in Practice?” Brookings, 14 July 2025, www.brookings.edu/articles/why-is-the-federal-reserve-independent-and-what-does-that-mean-in-practice/.