The Supreme Court has recognized the Federal Reserve’s special status as an independent agency, but President Trump’s attempt to fire a member without cause raises questions about the limits of presidential power. In removing Federal Reserve governor Lisa Cook, Trump is testing the commitment to protecting the Fed’s independence.
The move was made under a provision that requires presidents to have “sufficient cause” for removal, but the meaning and application of this phrase are unclear. Critics argue that the standard allows for too much executive control over independent agencies and undermine their autonomy.
The Federal Reserve Act of 1913 calls for a 14-year term for governors, with only removal for cause by the president. However, no previous president has tried to fire a Fed governor under this provision.
Experts say that without clear proof and a connection between Cook’s alleged misconduct and her official duties, Trump’s move may be seen as an attempt to expand presidential power at the expense of independent agencies.
The Supreme Court’s recognition of the Fed’s unique role in the American economy suggests that it will require compelling evidence and a high threshold for removal. In setting up expert agencies like the Fed, Congress aimed to insulate them from direct presidential oversight or control.
President Trump’s efforts to remove Cook had profound implications, including the potential to determine whether the Federal Reserve will remain under White House control or assert its independence.
Source: https://www.nytimes.com/2025/08/27/us/politics/supreme-court-fed-trump.html