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.
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FIRST ON FOX: House Republicans are pressing the Trump administration for answers over whether China is exploiting U.S. birthright citizenship and visa programs in a U.S. territory to secure long-term influence inside the United States.
In a letter sent Monday to outgoing Homeland Security Secretary Kristi Noem, Secretary of State Marco Rubio and Interior Secretary Doug Burgum, Reps. Chip Roy, R-Texas, and Tom Tiffany, R-Wis., and 32 other GOP members raise concerns that so-called “birth tourism” and visa-waiver policies in the Commonwealth of the Northern Mariana Islands could be leveraged by Chinese nationals in ways that present national security risks.
Noem will leave her position at the Department of Homeland Security at the end of the month.
“American citizenship is a sacred trust—not a loophole to be exploited. When foreign adversaries like the Chinese Communist Party can leverage birth tourism and visa-less programs to gain influence within our borders, we must restore integrity to our immigration system and defend the sovereignty of our Republic,” Roy said.
Tiffany argued that “Communist China has exploited ‘birth tourism’ by sending women to the Northern Mariana Islands solely to give birth and secure U.S. citizenship for their children,” adding that “It is time to close this loophole, end the abuse, and protect our national security.”
TRUMP SAYS SUPREME COURT RULING AGAINST BIRTHRIGHT CITIZENSHIP ORDER WOULD BENEFIT CHINA
House Republicans are pressing the Trump administration for answers over whether China is exploiting U.S. birthright citizenship and visa programs in a U.S. territory to secure long-term influence inside the United States. (GemStocks/Getty Images )
The Northern Mariana Islands is a U.S. territory in the Pacific, and like births in any U.S. state, children born there are granted American citizenship under the 14th Amendment, even though the territory operates under certain distinct immigration rules.
The lawmakers cite reports estimating that between 750,000 and 1.5 million Chinese nationals have obtained U.S. citizenship through birthright policies and birth tourism, though federal agencies have not publicly confirmed those figures. In their letter, Roy and Tiffany ask the Departments of Homeland Security, State and Interior to provide data on how many children have been born since 2009 to at least one Chinese national parent, how many have reached voting age, and how many are registered to vote in the United States.
They also ask whether any such individuals have documented ties to the Chinese Communist Party and request entry figures for Chinese nationals under Northern Mariana-specific immigration programs.
Under the 14th Amendment, individuals born on U.S. soil are generally granted citizenship at birth. The debate has centered on whether foreign nationals travel to the United States specifically to give birth so their children will obtain citizenship — a practice commonly referred to as birth tourism.
Federal prosecutors in recent years have brought criminal cases against operators of birth tourism businesses, particularly in California, where organizers were convicted of visa fraud and conspiracy for helping foreign nationals misrepresent their travel intentions in order to give birth in the United States.
The Northern Mariana Islands have long operated under distinct immigration frameworks. In 2009, the Obama administration implemented a categorical parole program allowing certain Chinese nationals to enter without obtaining a traditional U.S. tourist visa. The Biden administration in 2024 finalized a rule creating the Economic Vitality & Security Travel Authorization Program (EVS-TAP) for the Northern Mariana Islands, which allows certain Chinese nationals to enter the territory visa-free for short stays.
In a letter sent to Homeland Security Secretary Kristi Noem, Secretary of State Marco Rubio and Interior Secretary Doug Burgum, Reps. Chip Roy, R-Texas, and Tom Tiffany, R-Wis., and 32 other GOP members raise concerns that so-called “birth tourism” and visa-waiver policies in the Commonwealth of the Northern Mariana Islands (CNMI) could be leveraged by Chinese nationals in ways that present national security risks. (Kevin Dietsch/Getty Images)
Tiffany argued that “Communist China has exploited ‘birth tourism’ by sending women to the Northern Mariana Islands solely to give birth and secure U.S. citizenship for their children,” adding that “It is time to close this loophole, end the abuse, and protect our national security.” (AP Photo/Scott Bauer)
The lawmakers argue those policies created incentives for birth tourism in Saipan, the capital of the islands, pointing to reports that births to foreign visitors increased sharply after the 2009 changes.
NOEM BACKS SAVE AMERICA ACT, SLAMS ‘RADICAL LEFT’ OPPOSITION TO VOTER IDS AND PROOF OF CITIZENSHIP
They warn that once U.S.-born children turn 21, they can petition for lawful permanent resident status for their parents, potentially opening additional immigration pathways.
While the letter raises concerns that such individuals could eventually participate in U.S. elections, it does not cite evidence that large numbers are currently registered to vote or that the Chinese government has directed birth tourism as a coordinated strategy.
The Departments of Homeland Security and Interior did not immediately respond to Fox News Digital’s requests for comment. The State Department referred back to the Department of Homeland Security.
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The letter comes amid heightened tensions between Washington and Beijing, with U.S. officials repeatedly warning about Chinese influence operations, intellectual property theft and espionage efforts targeting American institutions.
Roy and Tiffany urged the administration to end any parole or visa-waiver programs extended to Chinese nationals in the Northern Mariana Islands and to provide a full accounting of the scope of birth tourism involving PRC nationals.
The Chinese embassy could not immediately be reached for comment.
Scott MacFarlane, a high-profile hire for CBS News five years ago, announced Monday he is leaving the network.
MacFarlane told colleagues in an email that the departure is his decision.
“I will always value the opportunity I had to work alongside the talented and committed professionals here,” MacFarlane said. “I’m proud to have had the words ‘CBS correspondent’ next to my name and always will be.”
MacFarlane added that he looks forward to “some independence and finding new spaces to share my work in line with my personal goals.”
MacFarlane is the first significant name to depart CBS News since parent company Paramount won its bid to acquire Warner Bros. Discovery on Feb. 27. CBS News is likely to be combined with Warner Bros. Discovery’s CNN if the deal gets regulatory approval.
Journalists at CBS News have also been concerned over the moves by Bari Weiss, the contrarian opinion writer and founder of the digital news site the Free Press who was brought in as editor in chief of the division. Weiss was recruited by Paramount Chief Executive David Ellison with a mandate to move CBS News to the political center.
Weiss is expected to make significant changes to “60 Minutes” and other CBS News programs in the coming months.
Executives at other TV news organizations say privately that they are seeing a heavy influx of resumes from CBS News journalists due to the upheaval at the company.
MacFarlane covered Congress and the Justice Department. CBS viewers saw him featured during extended network coverage of the State of the Union addresses and election nights.
MacFarlane was in Butler, Pa., during the assassination attempt of President Trump in July 2024. He reported the first accounts of the shooting scene and emergency responses moments after the shots were fired.
Before arriving at CBS News, MacFarlane served for eight years as an investigative reporter for WRC-TV, the NBC station in Washington, D.C.
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Fresh satellite images give a rare aerial view of the damage across Iran after U.S.-Israeli strikes and what Tehran’s retaliation left behind across the region.
Planet Labs satellite imagery captured burning ships and damaged facilities at the Konarak base in southern Iran, as well as significant destruction at Iran’s naval headquarters in Bandar Abbas on the Persian Gulf, reflecting the scale of the strikes on military infrastructure.
Satellite imagery from Planet Labs shows damage at Konarak naval base in southern Iran, left, and Iran’s Bandar Abbas naval headquarters in the Persian Gulf, right. (Planet Labs PBC)
Imagery from Vantor shows damage to facilities and vessels located in Iran’s Bushehr port in the Persian Gulf.
In addition to naval assets, satellite photos show a bunker at Bushehr air base hit by a strike, leaving a large crater and destroying several nearby small buildings.
More strikes targeted the Choqa Balk drone facility in western Iran.
Radar systems at the Zahedan air base in eastern Iran — near the country’s borders with Pakistan and Afghanistan — were also struck.
The two facilities are about 800 to 900 miles apart, underscoring the broad reach of the coordinated strikes.
Satellite imagery also reveals damage to aircraft on the tarmac at Shiraz air base, including scorch marks and debris around several parking areas.
Side-by-side photos showing damage to aircraft at Shiraz air base in Shiraz, Iran on March 6, 2026. (Vantor/Maxar/Getty Images)
Satellite imagery from Planet Labs shows thick smoke plumes rising above Tehran, signaling explosions and fires inside the Iranian capital.
The smoke underscores how the conflict has moved beyond isolated military sites and into the heart of Iran’s political center.
THE UNLIKELY TOOL TRUMP IS EYEING TO TACKLE RISING OIL PRICES AMID THE IRAN CONFLICT
A satellite image from Planet Labs shows a plume of smoke above Tehran, Iran, on March 1, 2026. (Planet Labs PBC)
Iran has since responded with missile and drone strikes of its own, expanding the conflict across the region.
Satellite images reveal damage to the port city of Sharjah in the United Arab Emirates. Sharjah is the third most populous after Dubai and Abu Dhabi.
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The Jebel Ali Port, the region’s largest maritime hub, was also targeted, underscoring how the retaliation extended beyond military sites to key infrastructure.
The new satellite imagery comes on the heels of U.S.-Israeli strikes that killed Iran’s supreme leader, Ayatollah Ali Khamenei, and several top members of the regime, triggering a succession crisis.
President Donald Trump warned on Sunday that Iran’s new leader is “not going to last long” without U.S. approval as Operation Epic Fury marches into a third week.
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