Supreme Court may leave big questions unresolved on Trump bid to fire Fed's Lisa Cook

• Legal experts predict a 'minimalist' decision that sends the case back to trial court rather than ruling on whether Trump has proper cause or constitutional authority to fire Fed governors
• Justices expressed concern about the rushed timeline and incomplete evidentiary record, with Justice Alito noting that courts have not fully explored facts like whether mortgage applications are even in the case record
• The trial judge previously ruled Trump's removal attempt likely violated Cook's Fifth Amendment due process rights and that mortgage fraud allegations were likely insufficient cause under the law creating the Fed

Summary: Supreme Court Unlikely to Resolve Key Questions in Trump-Cook Fed Case

The U.S. Supreme Court appears poised to issue a narrow ruling in President Donald Trump's attempt to fire Federal Reserve Governor Lisa Cook, likely returning the case to lower courts rather than resolving fundamental constitutional questions about presidential power over the Federal Reserve.

Key Developments:

• Trump attempted to fire Cook in 2025, citing unproven mortgage fraud allegations, which Cook claims are a pretext for her resistance to his demands for rapid interest rate cuts
• U.S. District Judge Jia Cobb issued a preliminary injunction blocking the removal in September
• Supreme Court oral arguments on January 21, 2026 revealed judicial hesitancy to grant Trump immediate removal authority

Legal Implications:

Legal experts predict a "minimalist" decision that avoids determining whether Trump has proper cause to remove Cook or whether presidents have constitutional authority to fire Fed officials. The court may send the case back for additional fact-finding, with the possibility of future Supreme Court review.

Conservative Justice Samuel Alito questioned why the case proceeded "in such a hurried manner," noting the incomplete evidentiary record. Justice Amy Coney Barrett raised concerns about economists' warnings that Cook's removal could trigger a recession.

Market Significance:

The case represents the biggest challenge to Federal Reserve independence since its 1913 founding. Trump also launched a separate challenge against Fed Chair Jerome Powell. Economists emphasize central bank independence is critical to prevent short-term political interference with monetary policy at the expense of long-term economic stability.

A ruling is expected by late June 2026, though it could come sooner. The 6-3 conservative-majority court has previously backed Trump in numerous emergency cases since he returned to office 12 months ago.