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Tags: lisa cook | federal reserve | donald trump | scotus

Fed's Lisa Cook: Central Bank Independence at Stake in Firing Case

By    |   Wednesday, 21 January 2026 01:40 PM EST

Federal Reserve Governor Lisa Cook, after the U.S. Supreme Court heard arguments in President Donald Trump's bid to remove her from the board, said Wednesday that the central bank’s independence is at stake.

"This case is about whether the Federal Reserve will set key interest rates guided by evidence and independent judgment or will succumb to political pressure," Cook said in a statement after attending the proceedings at the high court.

She left without speaking to reporters but later released a statement warning against political influence over monetary policy.

"Research and experience show that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment," Cook said, pointing out Congress insulated the Fed "from political threats, while holding it accountable for delivering on that mandate."

"For as long as I serve at the Federal Reserve, I will uphold the principle of political independence in service to the American people," she said.

Earlier Wednesday, the justices considered the Trump administration's request to lift a lower-court order that has barred Trump from removing Cook while her legal challenge over allegations of mortgage fraud proceeds.

They appeared skeptical about Trump's claims that he could fire Cook for alleged misconduct without allowing her to contest the criminal complaint.

The justices underscored the significance of the Fed’s independence while pressing Trump  Solicitor General D. John Sauer on claims that removing Cook from her position required urgent action.

Justice Samuel Alito questioned the "hurried manner" of the legal battle and noted that "no court has ever explored" the fraud allegations against Cook, while Justice Brett Kavanaugh, a Trump appointee, pressed Sauer on the significance of the Fed's historic independence. 

"What goes around comes around," said Kavanaugh. "All the current president’s appointees would likely be removed for cause on Jan. 20, 2029, if there’s a Democratic president or Jan. 20, 2033, and then we’re really at 'at-will'removal. So what are we doing here?"

The Supreme Court, which has a 6-3 conservative majority, agreed in October to hear the dispute but left Cook in her position for the time being.

The U.S. Court of Appeals for the District of Columbia Circuit declined the administration’s request to pause the order.

Cook has said the allegations were a pretext tied to disagreements over monetary policy. Trump has publicly pushed the central bank to cut interest rates and criticized Fed Chair Jerome Powell for not moving faster.

As a Fed governor, Cook helps set U.S. monetary policy alongside the rest of the central bank's seven-member board and the presidents of the 12 regional Federal Reserve banks. 

The Associated Press and Reuters contributed to this report.

Sandy Fitzgerald

Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics. 

© 2026 Newsmax. All rights reserved.


Politics
Federal Reserve Governor Lisa Cook, after the U.S. Supreme Court heard arguments in President Donald Trump's bid to remove her from the board, said Wednesday that the central bank's independence is at stake.
lisa cook, federal reserve, donald trump, scotus
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2026-40-21
Wednesday, 21 January 2026 01:40 PM
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