WASHINGTON D.C.: The U.S. Supreme Court rejected President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, preserving the central bank's long-standing independence in a landmark ruling on June 29.

In a 5-4 decision, the court refused to allow Trump to become the first president to remove a Federal Reserve governor since Congress established the central bank in 1913. Chief Justice John Roberts and Justice Brett Kavanaugh joined the court's three liberal justices in the majority, while Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Amy Coney Barrett dissented.

Writing for the majority, Roberts said Trump "failed to afford Cook the procedural protections to which she was entitled by statute. Without such protections, she could not properly dispute the charges the president laid against her."

Roberts added that Federal Reserve governors serve staggered 14-year terms and may be removed only "for cause," emphasizing the institution's historic independence from the White House.

Trump sought to dismiss Cook in August 2025, citing alleged mortgage fraud involving properties she owned before joining the Federal Reserve. Cook, the first Black woman to serve as a Fed governor, denied the allegations and argued they were a pretext to remove her over monetary policy differences.

The case has broad implications for the Federal Reserve's ability to set interest rates and monetary policy without political interference, a principle widely viewed as critical to keeping inflation under control.

Welcoming the ruling, Cook said it reaffirmed the Federal Reserve's independence.

"This was never about mortgage documents signed years before I became a Federal Reserve governor. It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people," she said.

The Supreme Court did not rule on the underlying allegations against Cook but said the dispute should return to lower courts, where she will have the opportunity to challenge Trump's claims.

Trump responded on social media, saying the case had been sent back "on a strictly procedural basis" and that his administration would "take appropriate action immediately."

The ruling is seen as a significant victory for Federal Reserve independence, which economists widely regard as essential to the central bank setting interest rates and monetary policy free from political pressure. Cook, who was appointed by former President Joe Biden in 2022, is due to serve until 2038.