Donald Trump’s attempt to dictate terms at the central bank has faced a blow. In a landmark ruling limiting presidential authority over the central bank, the US Supreme Court rejected his attempt to immediately remove Federal Reserve Governor Lisa Cook from her position.
Cook, a Joe Biden appointee, is serving a 14-year term on the Federal Reserve Board of Governors, which is set to expire in 2038.
Supreme Court blocks Trump’s removal of Federal Reserve Governor Lisa Cook
According to the Guardian, in a 5-4 opinion, the court said that Cook can stay on as a governor while she fights unproven allegations of mortgage fraud made by Trump officials.
Cook is the first Black woman to serve on the Fed’s board. Last August, Trump abruptly fired her on social media, claiming that he had evidence of Cook committing mortgage fraud. Cook denied the charge and sued the Trump administration, accusing it of firing her without cause.
As per The Guardian, the justices said the court ruled on the narrow ground that the president failed to provide Cook with the procedural protections required by law, adding, “Without such protections, she could not properly dispute the charges the president laid against her.”
The ruling is being viewed as a shift from how the court previously handled Trump’s second-term actions, with the decision limiting his authority over the Federal Reserve. The move comes amid ongoing tensions between Trump and central bank officials.
The decision is also being seen as a major win for the Federal Reserve, which has faced pressure from the White House over the past year. While the central bank’s independence is widely protected, Trump has repeatedly pushed for lower interest rates, a move the Fed has not supported.
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Originally reported by Sreemanti Sengupta on Reality Tea
