The US Supreme Court has ruled that President Donald Trump does not have the authority to remove Federal Reserve Governor Lisa Cook from her post.
The decision effectively ends the administration's legal challenge to oust the governor, a move that had raised significant concerns about the independence of the US central bank.
The ruling is a decisive blow to the White House's effort to assert direct control over the Federal Reserve.
By rejecting the president's request, the highest court has upheld the statutory protections that shield Fed governors from political dismissal, ensuring that monetary policy decisions remain insulated from executive branch pressure.
Markets had been on edge regarding the potential removal of Cook, who has been a vocal advocate for maintaining the Fed's independence.
The uncertainty surrounding her tenure had contributed to volatility in US Treasury yields and equity markets, as investors feared a politicization of interest rate decisions.