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Mon, 29 Jun 2026

Mon, 29 Jun 2026 Supreme Court blocks Trump's attempt to fire Federal Reserve Governor Lisa Cook

The decision, seen as a win for central bank independence, sends the fight over removal back to the lower courts.

* The US Supreme Court blocked President Trump's attempt to fire Federal Reserve Governor Lisa Cook, ruling that she was not given due process.
* The decision sends the matter back to lower courts, where Cook can challenge allegations of mortgage fraud and the administration must prove its case.
* Cook has denied the allegations, which were seen as a pretext to allow Trump to exert more control over the Fed.
* By law, a president can only remove Federal Reserve governors "for cause", intended to protect the bank from political pressure and ensure it sets policy for long-term economic goals.
* The Supreme Court's ruling affirms the independence of the Federal Reserve, but also delivered a separate ruling that weakes the independence of other federal regulators.
* In a 6-3 decision, the court ruled that the president can fire members of independent agencies at will, overturning a 90-year-old legal precedent.