Justice Brett Kavanaugh asked a lawyer for Federal Reserve Board of Governors member Lisa Cook whether impeachment is a realistic backstop for removing an independent official, during Wednesday’s oral arguments as the Supreme Court weighed limits on presidential firing power.
Why It Matters
The justices are contemplating a case that deals with the president’s removal of an independent official and what counts as “for cause.” An attorney representing Cook, former U.S. Solicitor General Paul Clement, tells the court that impeachment, a form of removal of an official, is “the ultimate backup” in a hypothetical situation that Justice Samuel Alito presented to him.
During arguments, several justices questioned whether President Donald Trump has the authority to fire a sitting Fed governor over allegations of mortgage fraud that Cook denies. Earlier in the hearing, Justice Brett Kavanaugh warned that allowing Cook’s dismissal could “weaken, if not shatter, the independence of the Federal Reserve.”
What To Know
Following Justice Samuel Alito’s hypothetical question, “how about if, after the person assumes office, videos are disclosed in which the officeholder is expressing deep admiration for Hitler or for the Klan?” Clement, responded “that’s an official that would be impeached in a heartbeat.”
Amid the back and forth among other justices as well, Clement reiterated that his “backup to the backup” is “impeachment.” Kavanaugh then jumped in stating, “We got an argument in the past that impeachment doesn’t cover private conduct. You obviously disagree with that then?”
Clement responded, “Well, I certainly see, but this actually kind of makes the point about judicial review, right?”
Kavanaugh said, “I’m not saying I agree with that, by the way. It’s been—it’s been argued.”
Cook’s attorney then said, “What I absolutely agree with is the Walter Nixon case says that there’s no judicial review of the impeachment determination in the end. So whatever the House and the Senate ultimately determine, I mean, they can make constitutional law, too and they can determine whether private conduct is or is not out.”
The back and forth continued with Clement bringing up “INM,” referring to inefficiency, neglect of duty, or malfeasance, which comes from the Federal Trade Commission Act. He told the Court, “the reason I want to spend at least a moment answering some of the hard hypos is not because I’m a masochist. It’s just because those are—have got to be the answers under INM.”
Kavanaugh responded, “your answer is that those are funneled to the impeachment process?” to which Clement responded “that’s right,” continuing on that “INM has worked for 150 years. And I think it would continue to work. It hasn’t proven a problem in practice.”
Why Did Trump Fire Lisa Cook From the Federal Reserve Board of Governors?
Trump moved to remove Cook from the Federal Reserve Board, citing allegations that she committed mortgage fraud in 2021, before she joined the central bank. The administration argues that Cook improperly claimed two properties as primary residences, potentially securing more favorable loan terms. Trump’s legal team has said the allegations amount to misconduct sufficient to justify her dismissal, though Cook has not been charged with any crime. Critics have questioned whether the effort reflects a broader attempt by Trump to exert greater control over the independent central bank and influence interest rate policy.
Who Is Lisa Cook? What to Know
Cook is a Federal Reserve governor and the first Black woman to serve on the Fed’s Board of Governors. An economist by training, she was confirmed to the board in 2022 after previously serving as a professor at Michigan State University and holding roles focused on economic research and policy.
Cook’s work has centered on labor markets, economic inequality and innovation. As one of seven governors, she helps set U.S. monetary policy, including interest rates, in a role designed to be insulated from political pressure.
What People Are Saying
The Supreme Court justices, writing in a separate case last year: “The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States.”
Justice Sonia Sotomayor, speaking Wednesday: “This whole case is irregular, starting with the Truth Social notice…But that’s where we are.”
White House spokesman Kush Desai previously told The Associated Press: “President Trump lawfully removed Lisa Cook for cause from the Federal Reserve Board of Governors. We look forward to ultimate victory after presenting our oral arguments before the Supreme Court in January.”
What Happens Next
The justices finished oral arguments on Wednesday and are expected to rule on the case at a later date.