Fed Governor Lisa Cook Faces Congress and SCOTUS Showdown Against Trump Administration

Federal Reserve Governor Lisa Cook braces for dual testimonies—Congressional scrutiny meets Supreme Court tensions as Trump-era policies resurface.

Political Crossfire

Cook’s testimony puts monetary policy under microscope—lawmakers demand answers on rate decisions amid election-year volatility. No data disclosed, yet pressure mounts.

Legal Battleground

SCOTUS showdown looms—Trump-appointed justices weigh Fed autonomy against executive overreach. Cook defends institutional independence without flinching.

Market Jitters

Traders eye hearings—any hint of policy shift could ripple through crypto and traditional markets. Because nothing says 'stable store of value' like politicians jawboning central bankers.

Cook stands firm—proves Fed governors earn their salt beyond printing money for Wall Street’s bonus seasons.

Fed board confirms Lisa is staying as court decides her fate

The Fed broke its silence Tuesday with a sharp reminder that only Congress, through the Federal Reserve Act, determines how and when a Fed governor can be removed. Governors serve long, fixed terms, and can only be taken off the board “for cause.”

The central bank didn’t say whether Trump’s claim qualifies, but it warned that those protections exist for a reason: to stop monetary policy from being politicized.

“Long tenures and removal protections for governors serve as a vital safeguard,” the Fed said, “ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.”

The central bank also doubled down on its commitment to remain independent and to carry out its duties “as established by law.” That includes promoting employment, maintaining stable prices, and ensuring a functioning financial system.

Trump, speaking at the WHITE House, told reporters he’s ready to let the courts settle this. “I abide by the court, yeah, I abide by the court,” he said. But he also predicted that Lisa’s removal would let him flip the board in his favor.

“The Fed’s board will soon be comprised by a majority of my appointees,” he said. That would give him more leverage to push interest rates lower, something he has repeatedly demanded since retaking office.

Lisa has not stepped down. She said Monday night that she would keep doing her job at the Fed, despite Trump’s announcement. When asked whether she was working at the D.C. headquarters or remotely, the Fed did not respond.

Trump claims “cause,” Lisa’s lawyer says “no authority”

Lisa’s lawyer, Abbe Lowell, pushed back hard. “Trump has no authority to remove Cook,” he said. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.” Lowell confirmed that a lawsuit is being filed to challenge what he called an illegal action.

Meanwhile, the White House insists Trump acted lawfully. In a written statement, Kush Desai, a spokesman for the administration, said the president had the legal right to act under 12 U.S.C. 242, a federal statute governing the Federal Reserve Board.

“The President exercised his lawful authority to remove a governor,” Desai said, adding that Lisa was “credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.”

The fight over Lisa’s position is no longer just about a job. It’s about power, control of the Fed board, and the limits of executive authority. The Fed’s top officials, including Chair Jerome Powell, have not made individual comments, as they tend to almost always don’t.

Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites