The US Supreme Court has blocked President Donald Trump’s effort to remove Federal Reserve Governor Lisa Cook from her post, delivering a decisive setback to the administration’s challenge to central bank independence.
In a narrow 5-4 decision, the justices ruled that the president lacks the authority to dismiss Cook, effectively halting the legal campaign to strip her of her seat on the Federal Open Market Committee (FOMC).
The ruling sends the dispute back to lower courts, but for now, Cook remains in place to participate in monetary policy decisions.
The decision is widely viewed as a victory for institutional checks and balances, affirming the Fed’s operational autonomy against executive overreach.
For markets, the outcome reduces uncertainty around the composition of the FOMC, which had been a source of volatility as traders weighed the potential impact of Cook’s removal on the bank’s policy stance.
Cook, known for her dovish leanings, has been a key voice in debates over interest rate trajectories, and her continued presence ensures a more balanced deliberation within the committee.