NextFin news, WASHINGTON — On Thursday, September 25, 2025, a bipartisan coalition of former Federal Reserve chairs, Treasury secretaries, and top economic officials urged the U.S. Supreme Court to reject President Donald Trump's effort to fire Federal Reserve Governor Lisa Cook. The filing was made in Washington, D.C., where the Supreme Court is considering the case.
The group, which includes former Fed chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, as well as former Treasury secretaries Henry Paulson, Timothy Geithner, and Lawrence Summers, warned that allowing Cook's removal would undermine the Federal Reserve's long-standing independence from political influence. They argued that such interference could erode public confidence in the Fed and jeopardize the credibility and effectiveness of U.S. monetary policy.
President Trump sought to remove Cook last month based on allegations of mortgage fraud related to loan documents she signed before joining the Fed in 2022. Cook has denied these allegations and has not been charged with any crime. Two lower courts have blocked the firing, allowing Cook to remain in her position while the legal proceedings continue.
The former officials emphasized that Federal Reserve governors are protected by law from removal except "for cause," traditionally meaning misconduct or neglect of duty. The central legal question is whether the mortgage fraud allegations constitute sufficient cause for removal.
The brief highlighted the economic importance of Fed independence, stating that a central bank free from political pressure is better able to maintain low and stable inflation, which supports economic stability and confidence in the U.S. dollar. They warned that political interference could lead to higher inflation and economic instability by undermining the Fed's ability to credibly commit to its inflation targets.
Legal experts note that the case could set a precedent regarding presidential authority to remove members of independent agencies. The Supreme Court's conservative majority has previously allowed removals of agency leaders during ongoing litigation, but the Fed's unique role in the economy may warrant special consideration.
The mortgage industry is closely watching the case, as the Fed's decisions on interest rates directly affect mortgage rates and the housing market. The recent Fed rate cut, made with Cook present, underscores the practical stakes of the legal dispute.
The Trump administration argues that the law permits the president to remove Fed governors for cause, including alleged fraud, and has appealed to the Supreme Court after lower courts blocked the firing. The Supreme Court's decision will have significant implications for the independence of the Federal Reserve and the broader U.S. economy.
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