Federal Reserve Governor Lisa Cook claims in the U.S. District Court for the District of Columbia that President Trump’s August 2025 attempt to fire her was unlawful. On June 29, 2026, the U.S. Supreme Court held governors’ for-cause protection is constitutional but requires notice and an opportunity to respond, and left her injunction in place. The case is back before the district court, and Cook answered a renewed removal notice in August 2026.
LATEST DEVELOPMENT · AUG 27, 2026
By August 27, 2026, Cook had submitted a written response to the White House’s renewed removal notice. In a five-page letter, her lawyer Abbe Lowell denied mortgage fraud and argued that the allegations do not provide a legally valid basis for removal. The merits case remains pending before Judge Jia M. Cobb in the district court.
BACKGROUND
On August 15, 2025, Federal Housing Finance Agency Director Bill Pulte sent the Department of Justice (DOJ) a criminal referral accusing Lisa Cook of mortgage fraud. He alleged that on 2021 mortgage applications, before she joined the Federal Reserve Board, Cook misrepresented two properties in Michigan and Georgia as primary residences. On August 25, 2025, President Trump cited the referral and announced that he was firing Cook for cause. Cook denies any wrongdoing and has never been charged.
On August 28, 2025, Cook sued in the U.S. District Court for the District of Columbia, represented by Abbe Lowell. She argues that the firing violated the Federal Reserve Act’s “for cause” standard, which she says covers only conduct in office. She also claims that her removal without notice or a hearing violated her Fifth Amendment due process rights. On September 9, 2025, Judge Jia M. Cobb granted a preliminary injunction, finding Cook likely to succeed on both her statutory and constitutional claims. On September 15, 2025, a divided panel of the U.S. Court of Appeals for the District of Columbia Circuit (the D.C. Circuit) denied the government’s request for a stay pending appeal.
On October 1, 2025, the U.S. Supreme Court deferred ruling on the government’s stay application and set the case for oral argument. The Court heard argument on January 21, 2026. On June 29, 2026, it ruled 5 to 4 that the for-cause removal protection for Fed governors is constitutional. It held that the President must give a governor notice and a meaningful opportunity to respond before a removal can take effect. The Court denied the stay and left the injunction in place, so Cook remained in office throughout the litigation.
On July 20, 2026, the D.C. Circuit’s mandate issued, and the case returned to Judge Cobb for further proceedings on the merits. On August 5, 2026, presidential aide Dan Scavino sent Cook a letter stating that Trump was considering her removal on the same mortgage fraud allegations. The White House framed the letter as compliance with the Supreme Court’s notice requirement and set an August 26 deadline for a written response. Cook’s lawyers submitted a five-page letter denying wrongdoing and arguing that the allegations remain legally insufficient. Cook’s original claims remain pending before the district court.
TIMELINE
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AUG 26, 2026FILINGCook submits written response denying wrongdoingAbbe Lowell submitted a five-page letter on Cook’s behalf denying mortgage fraud and arguing the allegations do not provide a legally valid basis for removal.
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AUG 5, 2026OTHERWhite House sends renewed removal noticePresidential aide Dan Scavino wrote that Trump was considering Cook’s removal over the same mortgage fraud allegations. The letter was framed as satisfying the Supreme Court’s notice requirement and set an August 26 deadline to respond.
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JUL 20, 2026PROCEDURALD.C. Circuit issues mandate and case returns to Judge CobbThe mandate followed the Supreme Court’s ruling and sent the merits case back to the district court for further proceedings.
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JUN 29, 2026JUDGMENTSupreme Court upholds Fed for-cause protection and denies stayWriting for a 5 to 4 majority, Chief Justice Roberts held that the protection requires notice and an opportunity to respond before removal. The Court denied the government’s stay application, keeping Cook in office.
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JAN 21, 2026HEARINGSupreme Court hears oral argumentSolicitor General D. John Sauer argued for Trump and Paul D. Clement argued for Cook before the full Supreme Court.
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OCT 1, 2025PROCEDURALSupreme Court defers stay ruling and sets oral argumentThe Supreme Court declined to rule immediately on the government’s stay application and scheduled oral argument for January 2026, leaving Cook in office in the meantime.
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SEP 15, 2025APPEALD.C. Circuit denies emergency stayA divided D.C. Circuit panel, with Judges Garcia and Childs concurring and Judge Katsas dissenting, denied the Trump administration’s request to stay the injunction pending appeal.
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SEP 9, 2025JUDGMENTJudge Cobb grants preliminary injunctionU.S. District Judge Jia Cobb ruled Cook was likely to succeed on her statutory and due process claims and ordered that she remain in her Fed post while litigation proceeds.
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AUG 28, 2025FILINGCook files suit challenging her removalRepresented by Abbe Lowell, Cook sued in the U.S. District Court for the District of Columbia. She argued that the firing violated the Federal Reserve Act’s for-cause provision and her due process rights.
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AUG 25, 2025OTHERTrump announces he is firing CookTrump posted a letter on social media stating he had determined there was sufficient cause to remove Cook from the Federal Reserve Board.
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AUG 15, 2025FILINGPulte refers mortgage fraud allegations to DOJFederal Housing Finance Agency Director Bill Pulte accused Cook of mortgage fraud in a criminal referral letter. The allegations concerned 2021 loan applications made before her Senate confirmation to the Fed board.