SCOTUS hears arguments in challenge from dismissed Fed governor

The U.S. Supreme Court heard oral arguments in Trump v. Cook Wednesday, a lawsuit to determine whether Federal Reserve Governor Lisa Cook can remain in her position while the lower courts determine if President Donald Trump’s August 2025 removal was “for cause.” 

The administration argued the president should have near-total authority to remove a Federal Reserve Governor, while Cook’s team argues the Fed is a “uniquely structured entity,” that requires governors to be removed for cause.  

A decision is expected in the coming months and may clarify how far presidential removal power extends and the due-process requirements for independent agency officials.  

However, the decision is unlikely have a major impact on Harper v. Bessent, the legal challenge from dismissed NCUA board members Todd Harper and Tanya Otsuka. A decision in Trump v. Slaughter, a similar but not identical challenge to the president’s removal of Federal Trade Commission Commissioner Rebecca Slaughter is expected by July. The Slaughter case will likely impact Harper v. Bessent as it challenges a 1935 precedent establishing limits on presidential removal authority. 

The D.C. Circuit Court of Appeals has suspended Harper v. Bessent pending the Supreme Court’s review of the Slaughter case.