Supreme Court blocks Trump from sacking Fed governor Lisa Cook
Financial Times 2026-06-29 14:29:42
Context: The US Supreme Court has blocked President Trump from firing Lisa Cook, a governor of the Federal Reserve, in a significant decision that asserts the independence of the central bank. The court's ruling comes after a separate decision that allows the president to remove a regulator. The move is seen as a crucial test of the limits of presidential power.
Key Facts
- The US Supreme Court has ruled that President Trump cannot fire Lisa Cook, a governor of the Federal Reserve, in a decision that upholds the independence of the central bank.
- The court's decision is a significant setback for President Trump, who had sought to remove Cook, a Democrat, from her position on the Fed's governing board.
- The Supreme Court's ruling is in line with a long-standing precedent that protects the independence of Federal Reserve governors, who are appointed to 14-year terms to shield them from political pressure.
- The decision comes after a separate ruling in which the court allowed the president to remove a regulator, highlighting the complexities and nuances of presidential power.
- Lisa Cook, a renowned economist, was appointed to the Fed's governing board in 2022 and has been a key player in shaping the central bank's monetary policy and regulatory agenda.