The US Supreme Court has ruled that President Donald Trump lacks the authority to remove Federal Reserve Governor Lisa Cook from her post, effectively blocking the administration's legal effort to oust her.
The decision ensures Cook remains on the central bank's board, preserving the current balance of the Federal Open Market Committee (FOMC).
Markets reacted to the ruling as a reinforcement of the Federal Reserve's institutional independence.
The verdict halts a significant political challenge to the central bank's leadership structure, which had introduced uncertainty regarding the composition of the body responsible for setting US interest rates.
By upholding Cook's position, the court has maintained the status quo for monetary policy decision-making.
The case centered on whether the executive branch could dismiss a Fed governor without cause, a question with profound implications for the separation of powers in US economic governance.