The US Supreme Court has ruled that President Donald Trump acted unlawfully in attempting to dismiss Federal Reserve Governor Lisa Cook, delivering a significant check on executive authority over the central bank.
The 6-3 decision, issued Monday, affirms the statutory protections afforded to Fed governors and rejects the White House’s effort to assert direct control over the Federal Reserve’s leadership.
In a separate but related ruling, the court simultaneously expanded presidential authority over independent regulatory agencies outside the financial sector.
This dual outcome creates a complex legal landscape: while the Fed’s operational independence remains intact, the administration gains broader leeway to influence other federal bodies.
The contrast underscores the judiciary’s nuanced approach to the separation of powers.
Markets reacted to the clarity on central bank governance.