Under the Federal Reserve Act and Supreme Court precedent, what legal obstacles will President Trump’s attempt to remove Federal Reserve Governor Lisa Cook confront in federal court?

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Trump’s August 25, 2025 removal of Governor Lisa Cook will face a lawsuit arguing it violates the Federal Reserve Act’s “for cause” removal provision, 12 U.S.C. § 242, which allows removal only for “inefficiency, neglect of duty, or malfeasance in office” (). Cook’s team, led by Abbe David Lowell, will contend that the mortgage application discrepancies alleged by FHFA Director Bill Pulte in 2021 fall outside those statutory grounds and that Trump’s letter failed to initiate the due-process procedures required for a for-cause firing (). They will likely seek a preliminary injunction to keep Cook in office pending resolution. Any district-court decision could be appealed to the D.C. Circuit and potentially the Supreme Court, where Humphrey’s Executor v. United States (295 U.S. 602 (1935))—which upheld for-cause removal limits for independent agencies—will be a key precedent ().

Under the Federal Reserve Act and Supreme Court precedent, what legal obstacles will President Trump’s attempt to remove Federal Reserve Governor Lisa Cook confront in federal court?

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