The US Supreme Court ruled 5-4 on June 29 that President Donald Trump cannot remove Federal Reserve Governor Lisa Cook, for now. Still, the decision preserves the Fed’s independence at the worst possible time for Bitcoin.
The ruling locks in a hawkish Fed that has already eliminated rate cut expectations for 2026 and put hikes back on the table. High rates keep pressure on zero-yield assets like Bitcoin, and Monday’s decision removes one of the few near-term paths to a more dovish board.
A Hawkish Fed Just Got More Secure
Cook’s survival matters for rate policy. Trump wanted her gone so he could, instead, install a governor more open to rate cuts. The court blocked that move.
The timing stings for crypto markets. The June Federal Open Market Committee meeting eliminated rate cut projections for 2026 entirely and put hikes back on the table. Bitcoin ETF outflows continued through June as investors rotated away from zero-yield assets.
BTC dropped below $60,000 on Monday, meaning it is now down more than 50% from its all-time high.
Monday’s ruling locks in the Warsh-led, hawkish Fed, at least until lower courts resolve the underlying case. Trump cannot sidestep that by firing governors at will.
“This was never about mortgage documents … It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure.” — Lisa Cook, Federal Reserve Governor, statement
What Case Does Trump Have Against Cook?
The case against Cook centers on allegations from FHFA Director Bill Pulte, who accused her of mortgage fraud in August 2025. Pulte claims Cook listed two properties, one in Michigan and one in Georgia, as primary residences within weeks of each other in 2021, notably before she joined the Fed board.
Cook’s attorney called the claim baseless, saying it rests on a single ambiguous reference in one mortgage document.
Lisa Cook, Federal Reserve Governor. Image Source: BBC
Cook and her allies argue that the timing reveals the real motive. Trump moved to fire her after months of pressuring the Fed to cut rates faster, and Cook had voted to hold rates steady. Ultimately, the court said no to the firing.
Yet, the fact that this case reached the Supreme Court at all is proof of concept. As Trump’s appointment of Warsh showed, political pressure on the Fed does not require firing anyone. It just requires choosing the right chair.
