Columbia News

Senator Eric Schmitt commented on the recent dismissal of a Federal Reserve Board Governor by President Trump in a series of posts on August 28, 2025. The tweets addressed both the reasons for the termination and the legal context surrounding such removals.

In his first post, Schmitt stated, "In Cook's termination letter, President Trump explained his cause for firing her: She likely committed mortgage fraud and is now under federal criminal investigation. The Fed Board—which indirectly sets mortgage interest rates—can't have a member who committed mortgage fraud." (August 28, 2025).

He continued to discuss the legal standards for removing a Federal Reserve Board Governor, referencing Supreme Court guidance: "So SCOTUS has suggested—but not definitively concluded—that Fed Board Governors can be removed only 'for cause.' That means the safest route to fire a Fed governor is for the President to state a sufficient reason—a 'cause'—to fire him or her." (August 28, 2025).

In his final tweet, Schmitt argued that President Trump's actions adhered to established legal precedent: "By explaining his cause for firing her, President Trump has carefully followed the law and acted within the bounds of SCOTUS precedent." (August 28, 2025).

Federal Reserve Board Governors are typically appointed to serve staggered fourteen-year terms and can only be removed "for cause," which generally refers to instances of misconduct or incapacity. While there is ongoing debate regarding what constitutes "cause," past Supreme Court opinions have suggested but not conclusively ruled that this standard applies to Fed governors. As one of the central banking system’s top officials, their removal draws significant public attention due to its implications for monetary policy and institutional independence.