The US Supreme Court has ruled that Federal Reserve Governor Lisa Cook may remain in her post, effectively blocking President Donald Trump’s attempt to remove her from the central bank’s board.
The decision, reported by multiple wire services, halts a legal challenge that had threatened to alter the composition of the Federal Open Market Committee (FOMC).
Markets reacted to the resolution of the political uncertainty surrounding the Fed's leadership.
The ruling ensures that the central bank retains its current voting members for the immediate future, preventing a potential vacancy that could have complicated policy deliberations.
Investors had been weighing the risk of a reduced board size and the potential for increased political pressure on monetary policy decisions.
The case centered on the legality of Cook's appointment and the president's authority to remove her.