Politics
Supreme Court appears ready to keep Lisa Cook on Federal Reserve board despite Trump efforts to fire her
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The Supreme Court appeared poised to give President Donald Trump one of his biggest legal setbacks in office, offering strong support Wednesday for Federal Reserve Governor Lisa Cook remaining in her leadership position — at least for now.
The justices debated in their packed courtroom whether Trump has broad unilateral executive authority to fire someone from the central bank, despite its special status as a stand-alone federal agency.
During nearly two hours of oral arguments, a majority seemed to agree the Fed’s unique public-private hybrid structure limited removal without clear “cause,” and that Trump did not meet his legal obligations when seeking Cook’s dismissal for alleged private mortgage fraud.
REPUBLICAN SENATOR VOWS TO BLOCK TRUMP FED NOMINEE OVER POWELL INVESTIGATION
Federal Reserve governor Lisa Cook and attorney Abbe Lowell, arrive at the Supreme Court in Washington, Wednesday, Jan. 21, 2026. (Mark Schiefelbein/AP Photo)
The case comes before the Supreme Court on an emergency basis — with the government seeking to dismiss Cook now, for as long as the courts decide the matter, a process that could last months.
The justices could decide the larger constitutional questions now or give the lower federal courts a chance for a full examination of the facts, with some guidance from the high court on the standards of “for cause” removal.
In arguments, most on the court seemed skeptical of Trump’s actions.
“That’s your position that there’s no judicial review, no process required, no remedy available?” Justice Brett Kavanaugh asked Solicitor General D. John Sauer. “Very low bar for cause that the president alone determines. And that would weaken, if not shatter, the independence of the Federal Reserve.”
“Let’s talk about the real-world downstream effects of this. Because if this were set as a precedent, it seems to me just thinking big picture, what goes around, comes around,” added Kavanaugh, who has typically been an ardent defender of executive power. “All the current president’s appointees would likely be removed for cause on January 20th, 2029 — if there’s a Democratic president or January 20th, 2033. And then, we’re really at, at will removal.”
Others on the bench raised questions of “public confidence” if the president could fire Fed governors without fully explaining or justifying the reasons.
“We have amicus briefs from economists who tell us that if Governor Cook is” fired, asked Justice Amy Coney Barrett, “that it can trigger a recession. How should we think about the public interest in a case like this?”
The Competing Arguments
Cook’s lawyer told the nine-member bench court the Federal Reserve System was created by Congress in 1913 as a wholly independent entity, to insulate it from political influence, and from any one president “stacking the deck” with their own nominees.
The first Black female Fed governor claims to be a political pawn in Trump’s very public efforts to dictate the board’s interest rate policies and by exploiting what she calls “manufactured charges” of wrongdoing.
GOP SENATOR SUGGESTS FED CHAIR POWELL RESIGN NOW TO DODGE POTENTIAL CRIMINAL INDICTMENT
President Donald Trump speaks with Federal Reserve chair Jerome Powell (R) as he visits the Federal Reserve in Washington, D.C., on July 24, 2025.
With Cook in the audience as a show of support was Fed Chairman Jerome Powell, whom Trump has also sought to remove in a broader, ongoing feud with the agency over the pace of lowering benchmark interest rates to spur the domestic economy.
But the Trump Justice Department said he had executive authority to seek Cook’s removal, free from judicial review.
Independent Agency Review
The conservative court has allowed much of Trump’s challenged executive actions to be enforced at least temporarily — including upholding firings of members of the National Labor Relations Board, the Merit Systems Protection Board, the Consumer Product Safety Commission, and the Federal Trade Commission, despite federal laws protecting them against removal without good cause.
The justices last month heard arguments in a separate case, on Trump’s efforts to remove Democrat-appointed Rebecca Slaughter from the Federal Trade Commission (FTC), which, like the Fed, is a congressionally-created independent, multi-member regulatory agency.
The 6-3 conservative majority in that petition appeared ready to rule for the president when it involves semi-autonomous agencies like the FTC.
But in the Federal Reserve dispute, the high court clearly indicated this institution was different.
In the Cook case, lower courts ruled she did not receive due process when the president tried to fire her.
The current posture of the case is whether Trump can remove Cook — at least temporarily — while the dispute continues to play out on the merits.
The “for cause” removal restriction’s constitutionality is not directly before the justices, but nevertheless played a key role in the oral argument session.
The Supreme Court could go ahead and settle the competing issues now — which seems unlikely — or leave it to the lower courts to continue hearing the appeal, with guidance on how to proceed.
Focus on the Fed
Though its leaders are appointed by the president and confirmed by the Senate, the seven-member board is considered an independent government agency, since its monetary policy decisions do not need presidential or legislative approval. But the agency does provide Congress with regular reports on its work.
It also does not receive any federal funding, and the terms of the members of the board of governors span multiple presidential and congressional terms.
Under law, the Federal Reserve’s leadership has a three-fold mandate: “maximum employment, stable prices, and moderate long-term interest rates.”
The 12 Federal Reserve Banks are not part of the federal government, but set up like private corporations, and regionally located across the country.
In arguments, most justices agreed Cook deserved some chance to make her case that a dismissal would be improper.
SUPREME COURT PREPARES FOR MAJOR TEST OF PRESIDENTIAL POWER IN TRUMP EFFORTS TO FIRE FEDERAL RESERVE GOVERNOR
The Supreme Court building in Washington, D.C. (AP Photo/J. Scott Applewhite, File)
“Why are you afraid of a hearing?” asked Justice Amy Coney Barrett, at one point.
Justice Neil Gorsuch asked: “Let’s, just suppose with me, hypothetically, for the moment, that the court read the act to require notice and a hearing … What would that hearing look like?”
Gorsuch asked if the president could just call Cook into the White House Roosevelt Room. “So just a meeting across a conference table, finish with ‘you’re fired?’”
But Chief Justice John Roberts repeatedly said a hearing on the allegations would serve little use if her only defense is she made an “inadvertent error” on her mortgage application.
The public session also focused extensively on the standards of “cause” that would permit Cook’s dismissal. Several justices suggested the mortgage fraud claims against Cook were not serious enough to trigger emergency action requested by the government to remove her at least temporarily.
Existing statutory removal protections include the so-called “INM standard” — “inefficiency, neglect of malfeasance.”
“The question becomes, is it grossly negligent to make a mistake on a mortgage application?” said Justice Sonia Sotomayor.
Justice Samuel Alito also asked why the case was handled “in such a hurried manner,” suggesting concern the allegations against Cook have not been properly adjudicated, either by the courts or by the president himself.
In a statement after the hearing ended, Cook said her case is “about whether the Federal Reserve will set key interest rates guided by evidence and independent judgment or will succumb to political pressure.”
The Impact
The Federal Reserve Act (FRA) says the president can only remove members of the Fed board and FOMC “for cause.” The exact parameters of that standard were not spelled out in the original law, and never fully tested in the courts.
Cook — appointed for a 14-year term by former President Joe Biden in 2023 — will remain on the job at least until the court decides the current legal questions.
SUPREME COURT TEMPORARILY GREENLIGHTS FIRING OF BIDEN-APPOINTED FTC COMMISSIONER
Lisa DeNell Cook is sworn in during a Senate Banking nominations hearing on June 21, 2023, in Washington. (Drew Angerer/Getty Images)
No president has fired a sitting Fed governor in the law’s 112-year history.
She strongly denies accusations of falsely claiming two homes in Georgia and Michigan as her primary residence to secure better mortgage terms. She has not been charged with any crime.
Cook sued the administration last August in a bid to keep her job.
Just after the court arguments ended, Cook released a statement saying her case is “about whether the Federal Reserve will set key interest rates guided by evidence and independent judgment or will succumb to political pressure.”
The next Federal Open Market Committee (FOMC) meeting is scheduled for January 27 and 28, with an expected interest rate decision. Both Powell and Cook are each set to participate.
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Financial markets, private banks, businesses, and investors will be closely watching what the Supreme Court does in the Federal Reserve dispute, and a separate pending appeal over Trump’s sweeping reciprocal global tariffs.
A written ruling in that import tax case, which was argued by the justices in November, could come at any time.
The Fed case is Trump v. Cook (25a312). A decision there could come relatively quickly within weeks, or potentially as late as June or early July.
Politics
Trump ally diGenova tapped to lead DOJ probe into Brennan over Russia probe origins
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The Justice Department is turning to former Trump attorney Joeseph diGenova to spearhead a probe into ex-CIA Director John Brennan and others over the origins of the Trump-Russia investigation, as the department reshuffles leadership of the sprawling inquiry.
Acting Attorney General Todd Blanche has tapped diGenova to serve as counsel overseeing the matter, according to a New York Times report, putting a former Trump attorney in a key role in the high-profile probe. A federal grand jury seated in Miami has been impaneled since late last year.
The Department of Justice did not immediately respond to Fox News Digital’s request for comment.
DOJ ACTIVELY PREPARING TO ISSUE GRAND JURY SUBPOENAS RELATING TO JOHN BRENNAN INVESTIGATION: SOURCES
Joseph diGenova represented President Donald Trump during special counsel Robert Mueller’s investigation. (Tom Williams/CQ-Roll Call/Getty Images)
DiGenova, a former U.S. attorney in Washington, D.C., who represented Trump during special counsel Robert Mueller’s investigation, has repeatedly accused Brennan of misconduct tied to the origins of the Russia probe—allegations that have not resulted in criminal charges.
He also said in a 2018 appearance on Fox News that Brennan colluded with the FBI and DOJ to frame Trump.
The origins of the Russia investigation have been the subject of ongoing scrutiny by Trump allies, who have argued that intelligence and law enforcement officials improperly launched the probe.
BRENNAN INDICTMENT COULD COME WITHIN ‘WEEKS’ AS PROSECUTORS REQUEST OFFICIAL TRANSCRIPTS
Joseph diGenova has previously said that ex-CIA chief John Brennan colluded with the FBI and DOJ to frame Trump. (Tom Williams/CQ-Roll Call/Getty Images)
DiGenova’s appointment follows the ouster of Maria Medetis Long, a national security prosecutor in the South Florida U.S. attorney’s office. She had been overseeing the inquiry, including a false statements probe related to Brennan and broader conspiracy-related investigations.
As the investigation continues, federal investigators have issued subpoenas seeking information related to intelligence assessments of Russian interference in the 2016 election.
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John Brennan has denied any wrongdoing related to the Russia investigation. (William B. Plowman/NBC/NBC NewsWire via Getty Images; Alex Wong/Getty Images)
Brennan has previously denied wrongdoing related to the Russia investigation and has defended the intelligence community’s assessment that Moscow interfered in the 2016 election.
Politics
Supreme Court weighs phone searches to find criminals amid complaints of ‘digital dragnets’
WASHINGTON — A man carrying a gun and a cellphone entered a federal credit union in a small town in central Virginia in May 2019 and demanded cash.
He left with $195,000 in a bag and no clue to his identity. But his smartphone was keeping track of him.
What happened next could yield a landmark ruling from the Supreme Court on the 4th Amendment and its restrictions against “unreasonable searches.” The court will hear arguments on the issue on April 27.
Typically, police use tips or leads to find suspects, then seek a search warrant from a judge to enter a house or other private area to seize the evidence that can prove a crime.
Civil libertarians say the new “digital dragnets” work in reverse.
“It’s grab the data and search first. Suspicion later. That’s opposite of how our system has worked, and it’s really dangerous,” said Jake Laperruque, an attorney for the Center for Democracy & Technology.
But these new data scans can be effective in finding criminals.
Lacking leads in the Virginia bank robbery, a police detective turned to what one judge in the case called a “groundbreaking investigative tool … enabling the relentless collection of eerily precise location data.”
Cellphones can be tracked through towers, and Google stored this location history data for hundreds of millions of users. The detective sent Google a demand for information known as a “geofence warrant,” referring to a virtual fence around a particular geographic area at a specific time.
The officer sought phones that were within 150 yards of the bank during the hour of the robbery. He used that data to locate Okello Chatrie, then obtained a search warrant of his home where the cash and the holdup notes were found.
Chatrie entered a conditional guilty plea, but the Supreme Court will hear his appeal next week.
The justices agreed to decide whether geofence warrants violate the 4th Amendment.
The outcome may go beyond location tracking. At issue more broadly is the legal status of the vast amount of privately stored data that can be easily scanned.
This may include words or phrases found in Google searches or in emails. For example, investigators may want to know who searched for a particular address in the weeks before an arson or a murder took place there or who searched for information on making a particular type of bomb.
Judges are deeply divided on how this fits with the 4th Amendment.
Two years ago, the conservative U.S. Court of Appeals for the 5th Circuit in New Orleans ruled “geofence warrants are general warrants categorically prohibited by the 4th Amendment.”
Chief Justice John Roberts sided with the court’s liberals in a 4th Amendment privacy case in 2018.
(Alex Wong / Getty Images)
Historians of the 4th Amendment say the constitutional ban on “unreasonable searches and seizures” arose from the anger in the American colonies over British officers using general warrants to search homes and stores even when they had no reason to suspect any particular person of wrongdoing.
The National Assn. of Criminal Defense Lawyers relies on that contention in opposing geofence warrants.
Its lawyers argued the government obtained Chatrie’s “private location information … with an unconstitutional general warrant that compelled Google to conduct a fishing expedition through millions of Google accounts, without any basis for believing that any one of them would contain incriminating evidence.”
Meanwhile, the more liberal 4th Circuit in Virginia divided 7-7 to reject Chatrie’s appeal. Several judges explained the law was not clear, and the police officer had done nothing wrong.
“There was no search here,” Judge J. Harvie Wilkinson wrote in a concurring opinion that defended the use of this tracking data.
He pointed to Supreme Court rulings in the 1970s declaring that check records held by a bank or dialing records held by a phone company were not private and could be searched by investigators without a warrant.
Chatrie had agreed to having his location records held by Google. If financial records for several months are not private, the judge wrote, “surely this request for a two-hour snapshot of one’s public movements” is not private either.
Google changed its policy in 2023 and no longer stores location history data for all of its users. But cellphone carriers continue to receive warrants that seek tracking data.
Wilkinson, a prominent conservative from the Reagan era, also argued it would be a mistake for the courts to “frustrate law enforcement’s ability to keep pace with tech-savvy criminals” or cause “more cold cases to go unsolved. Think of a murder where the culprit leaves behind his encrypted phone and nothing else. No fingerprints, no witnesses, no murder weapon. But because the killer allowed Google to track his location, a geofence warrant can crack the case,” he wrote.
Judges in Los Angeles upheld the use of a geofence warrant to find and convict two men for a robbery and murder in a bank parking lot in Paramount.
The victim, Adbadalla Thabet, collected cash from gas stations in Downey, Bellflower, Compton and Lynwood early in the morning before driving to the bank.
After he was robbed and shot, a Los Angeles County sheriff’s detective found video surveillance that showed he had been followed by two cars whose license plates could not be seen.
The detective then sought a geofence warrant from a Superior Court judge that asked Google for location data for six designated spots on the morning of the murder.
That led to the identification of Daniel Meza and Walter Meneses, who pleaded guilty to the crimes. A California Court of Appeal rejected their 4th Amendment claim in 2023, even though the judges said they had legal doubts about the “novelty of the particular surveillance technique at issue.”
The Supreme Court has also been split on how to apply the 4th Amendment to new types of surveillance.
By a 5-4 vote, the court in 2018 ruled the FBI should have obtained a search warrant before it required a cellphone company to turn over 127 days of records for Timothy Carpenter, a suspect in a series of store robberies in Michigan.
The data confirmed Carpenter was nearby when four of the stores were robbed.
Chief Justice John G. Roberts, joined by four liberal justices, said this lengthy surveillance violated privacy rights protected by the 4th Amendment.
The “seismic shifts in technology” could permit total surveillance of the public, Roberts wrote, and “we decline to grant the state unrestricted access” to these databases.
But he described the Carpenter decision as “narrow” because it turned on the many weeks of surveillance data.
In dissent, four conservatives questioned how tracking someone’s driving violates their privacy. Surveillance cameras and license plate readers are commonly used by investigators and have rarely been challenged.
Solicitor Gen. D. John Sauer relies on that argument in his defense of Chatrie’s conviction. “An individual has no reasonable expectation of privacy in movements that anyone could see,” he wrote.
The justices will issue a decision by the end of June.
Politics
Trump renews bridge, power plant threat against Iran in push for deal, mocks ‘tough guy’ IRGC
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President Donald Trump mocked the Islamic Revolutionary Guard on Sunday morning for staking claim to a Strait of Hormuz “blockade” the U.S. military had already put in place.
“Iran recently announced that they were closing the Strait, which is strange, because our BLOCKADE has already closed it,” Trump wrote on Truth Social. “They’re helping us without knowing, and they are the ones that lose with the closed passage, $500 Million Dollars a day! The United States loses nothing.
“In fact, many Ships are headed, right now, to the U.S., Texas, Louisiana, and Alaska, to load up, compliments of the IRGC, always wanting to be ‘the tough guy!’”
Trump declared Saturday’s IRGC fire was “a total violation” of the ceasefire.
“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” his post began.
“Many of them were aimed at a French Ship, and a Freighter from the United Kingdom. That wasn’t nice, was it? My Representatives are going to Islamabad, Pakistan — They will be there tomorrow evening, for Negotiations.”
Trump remains hopeful about diplomacy, but is not ruling out a return to force, where he once warned about ending “civilation” in Iran as they know it.
“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump’s stern warning continued.
“NO MORE MR. NICE GUY!
“They’ll come down fast, they’ll come down easy and, if they don’t take the DEAL, it will be my Honor to do what has to be done, which should have been done to Iran, by other Presidents, for the last 47 years. IT’S TIME FOR THE IRAN KILLING MACHINE TO END!”
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