Donald Trump is moving way quicker than his first term. And this could accelerate it even faster.
Because Trump demanded the Supreme Court green light an unprecedented power move.
Trump Fights for Fed Accountability in Supreme Court Bid
President Donald Trump’s Justice Department filed an urgent petition with the Supreme Court to secure his authority to remove Federal Reserve Governor Lisa Cook, a Biden appointee, after lower courts blocked her dismissal. The move underscores Trump’s commitment to ensuring accountability in the nation’s central bank amid serious allegations of misconduct. Solicitor General D. John Sauer, in a sharply worded filing, argued that the lower courts’ rulings constitute “improper judicial interference with the President’s removal authority,” asserting that Cook’s alleged mortgage fraud provides clear grounds for her ouster.
“The President’s strong concerns about the appearance of mortgage fraud, based on facially contradictory representations made to obtain mortgages by someone whose job is to set interest rates that affect Americans’ mortgages, satisfy any conception of cause,” Sauer wrote.
Allegations of Misconduct Fuel Legal Battle
The controversy erupted on August 25, when Trump moved to fire Cook, citing claims by Federal Housing Finance Agency Director Bill Pulte that she misrepresented property statuses on mortgage applications for homes in Michigan and Georgia in 2021, before her Fed tenure began in 2022.
These allegations, which prompted a Justice Department investigation, raise questions about Cook’s fitness to oversee monetary policy affecting millions of Americans.
Despite Cook’s legal team arguing that her paperwork issues do not meet the Federal Reserve Act’s “for cause” removal standard, Sauer countered that her actions “indisputably call into question Cook’s trustworthiness” as a steward of the economy.
A federal judge and a divided D.C. Circuit Court panel temporarily blocked Cook’s removal, allowing her to participate in the Fed’s September 17 decision to cut interest rates by 25 basis points—a move Trump’s new appointee, Stephen Miran, opposed, favoring a bolder 50-basis-point cut.
Trump’s Push to Reshape Fed Gains Momentum
Trump’s unprecedented attempt to fire a Fed governor reflects his broader strategy to align the central bank with his economic agenda, including lowering interest rates to ease the refinancing of national debt amid looming tariff-driven inflationary pressures. The Supreme Court filing argues that Cook lacks a Fifth Amendment property interest in her position, rejecting claims that her due process rights were violated.
“This application involves yet another case of improper judicial interference with the President’s removal authority,” Sauer stated, urging Chief Justice John Roberts to issue an emergency order to remove Cook while litigation continues.
The case, a historic first in the Fed’s 111-year history, could redefine the balance between presidential power and the central bank’s independence, with Trump’s track record of successful Supreme Court appeals bolstering his position.
Why This Is a Victory for Trump’s Leadership
President Trump’s move to seek Lisa Cook’s removal is a strategic win, showcasing his resolve to hold public officials accountable and protect American economic interests.
By challenging Cook’s alleged mortgage fraud—actions that could undermine public trust in a Fed governor responsible for setting interest rates—Trump is prioritizing transparency and integrity in one of the nation’s most critical institutions.
The Justice Department’s Supreme Court petition, backed by Solicitor General Sauer’s robust legal arguments, positions Trump to potentially overcome lower court obstacles, reinforcing his authority to shape the Fed’s direction.
His administration’s success in securing a dissenting vote from new appointee Stephen Miran in the Fed’s latest rate decision further signals Trump’s growing influence over monetary policy.
This high-stakes legal battle not only highlights Trump’s commitment to decisive action but also sets the stage for a landmark Supreme Court ruling that could affirm his vision for a more accountable Federal Reserve, delivering a significant victory for his economic leadership.
