2 Supreme Court rulings treat the Fed as an exception
Summary
The U.S. Supreme Court ruled that President Donald Trump cannot fire Federal Reserve Governor Lisa Cook without proper legal cause and procedure. The Court emphasized the Fed’s independence but allowed presidents more freedom to remove leaders from other independent agencies.Key Facts
- The Supreme Court decided 5-4 that President Trump cannot remove Fed Governor Lisa Cook for now.
- The ruling supports the Federal Reserve’s independence in setting monetary policy.
- Trump tried to fire Cook, accusing her of lying on mortgage applications, but courts said proper legal steps weren’t followed.
- Chief Justice John Roberts wrote that only Congress can change how Fed governors are removed, not the courts.
- A separate ruling allows the president to remove leaders of other independent agencies more easily than before.
- The Court overturned a 1935 decision that had protected many agency leaders from being fired without cause.
- Lisa Cook said the firing attempt was politically motivated because she resisted political pressure on interest rates.
- President Trump said the ruling was about procedure and promised to keep trying to remove Cook.
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