US Supreme Court Rules Trump’s Firing of Lisa Cook From Fed Was Unconstitutional
Justices find president does not have constitutional authority to fire Federal Reserve governor without cause
TL;DR
- The US Supreme Court has ruled that a president cannot immediately fire a Federal Reserve governor.
- Lisa Cook, a Federal Reserve governor, can remain in her position while fighting allegations of mortgage fraud.
- The court cited procedural protections that must be afforded to the governor before removal.
- The ruling is seen as a win for the Federal Reserve's independence from the White House.
- President Trump has previously attacked the Fed for holding interest rates he believes are too high.
- The independence of the Fed is widely considered essential for a stable economy.