The US Supreme Court has issued a temporary block on President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook from her post.
The decision halts the administration’s effort to oust Cook, who faces allegations of mortgage fraud, and represents a decisive legal setback for the White House’s push to assert direct control over the central bank.
Multiple wire services, including BBC and ABC News, confirmed the court’s intervention on Monday.
The ruling effectively preserves the status quo at the Federal Reserve, preventing a sudden vacancy on the Board of Governors that could have disrupted the central bank’s decision-making process during a critical period for monetary policy.
The development is significant for markets, as it alleviates immediate concerns about political interference in the Fed’s independence.
Investors have been closely monitoring the standoff between the executive branch and the central bank, with fears that a forced removal could complicate the rate path and undermine confidence in the institution’s autonomy.