Trump can only fire Fed governors on "just cause"
2025-08-26 00:58:16
Trump's announcement that he had fired Federal Reserve Governor Tim Cook was an unprecedented move and marked a significant escalation in his attacks on the central bank. Trump's move has pushed the Fed system into uncharted territory and is likely to trigger a legal clash that could end in the Supreme Court. The Federal Reserve Act of 1913 limits the president's power to unilaterally fire a Fed governor, stipulating that the president can only do so "for good cause." While the law does not specify what "good cause" includes, it has historically been understood as malfeasance or dereliction of duty. If Trump ultimately succeeds in firing Cook, he will be able to nominate her successor and reshape the Fed Board of Governors for years to come.
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