Court rules against Trump's attempt to oust Fed's Cook
A federal court just decided that Lisa Cook can stay on as a Federal Reserve Governor while she fights President Trump's move to fire her.
Trump tried to oust Cook over claims of mortgage fraud tied to two homes she bought in 2021, with allegations that she misrepresented them for better loan terms—a charge Cook firmly denies.
Why it matters
This isn't just about one job.
No president has ever fired a Fed governor in the bank's 112-year history, and the court's ruling helps protect the Fed from political interference.
Cook's lawyers argue presidents can only remove governors for serious wrongdoing, and only after a fair hearing.
The decision signals that even powerful leaders can't easily shake up independent institutions like the Fed, which is key for keeping the economy steady and politics out of your wallet.