ATTORNEY GENERAL BONTA URGES U.S. SUPREME COURT TO KEEP FEDERAL RESERVE GOVERNOR LISA COOK IN HER POSITION

The following information was released by the office of the California Attorney General:

California Attorney General Rob Bonta today joined a coalition 23 attorneys general in filing an amicus brief in the U.S. Supreme Court in Donald J. Trump v. Lisa D. Cook, a case concerning President Trump's attempt to remove Federal Reserve Governor Lisa Cook from her position on the Federal Reserve Board. The Board of Governors of the Federal Reserve is the primary entity that oversees the Federal Reserve System, the U.S. central bank, which is tasked with promoting financial system stability, supervising and regulating financial institutions, and promoting consumer protection. In the brief, the attorneys general ask the U.S. Supreme Court to allow Governor Cook to remain in her post while litigation in the case proceeds, citing concerns that given the Federal Reserve's responsibilities, increased institutional uncertainty from the fallout of Governor Cook's removal would cause downstream economic harms on states.

"The Federal Reserve Board serves all Americans by promoting the health and stability of the U.S. economy and financial system. By continuing his attempt to remove Governor Lisa Cook one of seven essential board members President Trump is not only undermining the Board's independence but also threatening to throw an institution that safeguards California's economy into chaos," said Attorney General Bonta. "From designing their state budgets to taking out a mortgage, the State of California and its people depend on stability, independence, and good governance at the Federal Reserve. I urge the U.S. Supreme Court to uphold the preliminary injunction that has allowed Governor Cook to continue her work on the Board of Governors while litigation proceeds."

In August 2025, President Trump attempted to remove Lisa Cook from the Board of Governors "for cause." The purported "cause" was an allegation that Governor Cook had defrauded mortgage lenders by claiming two primary residences to receive lower interest rates in 2021, prior to her appointment to the Federal Reserve. The U.S. Department of Justice has opened an investigation into the matter, but the allegations have not been substantiated to date. For the Federal Reserve Board to function as Congress intended, dismissals of governors for cause must mean something more specific than an unreviewable reason left entirely to the President's discretion. Otherwise, "for cause" then means "for whatever reason the President decides," which is nothing more than termination at the President's discretion because he does not like the person or the decisions the board is making an approach to governing the U.S. financial system that Congress has rejected. Despite the lack of evidence, a premature investigation, and a District Court ruling that Governor Cook should stay in her post while the investigation proceeds, President Trump is again attempting to move forward with the removal of Governor Cook.

In the brief, the attorneys general argue that allowing President Trump to immediately remove Governor Cook from the Board of Governors would undermine the judiciary's important role in ensuring the President acts within his authority. Concerningly, given the Federal Reserve Board's critical role in promoting the stability of the financial system, Governor Cook's sudden remove is expected to likely result in higher and more volatile inflation, unemployment, and market conditions that may harm states by:

Undermining the projections used to craft state budgets;

Increasing costs to provide state services; and

Increasing costs for state services to support people who are unemployed.

Joining Attorney General Bonta in filing the amicus brief are the attorneys general from Arizona, Connecticut, Colorado, Delaware, Hawai'i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.