Washington: US President Donald Trump has suffered a significant legal setback after the US Supreme Court temporarily blocked his administration’s attempt to remove Federal Reserve Governor Lisa Cook from office. In a narrow 5-4 decision, the court ruled that Cook will remain in her position while the legal challenge proceeds through the lower courts.
The Trump administration had sought Cook’s removal, citing allegations of mortgage fraud. Cook has denied the allegations, arguing that the move was politically motivated. The Supreme Court said that officials serving in independent institutions such as the Federal Reserve cannot be removed without following due legal process and ensuring they have an opportunity to respond.
Chief Justice John Roberts, in the court’s order, emphasized the importance of preserving the Federal Reserve’s institutional independence. The ruling underscored that presidential authority to remove officials from independent agencies is not unlimited and must comply with constitutional and legal safeguards.
The decision came even as the Supreme Court, in a separate ruling, expanded the President’s authority to remove officials from certain other independent federal agencies. However, the court treated the Federal Reserve differently, recognizing its unique role in maintaining economic and monetary stability.
The ruling marks a key victory for the Federal Reserve’s autonomy and is expected to have broader implications for the relationship between the White House and independent regulatory institutions in the United States.