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, delivered in a narrow 5-4 vote, marks a significant check on executive power over the central bank and ensures Cook remains on the board of governors.
This ruling prevents Trump from becoming the first president since the Federal Reserve's establishment in 1913 to remove a board member.
The court's decision underscores the legal protections afforded to Fed governors, reinforcing the central bank's operational independence from political interference.
By upholding Cook's position, the judiciary has drawn a clear line regarding the limits of presidential authority over monetary policy institutions.
The outcome carries immediate implications for market confidence in the Fed's autonomy.