Trump vs Fed: Court Sides With Central Bank Independence

The US Supreme Court has blocked Donald Trump’s attempt to immediately fire Federal Reserve Governor Lisa Cook, ruling that the case will only be decided after hearings in January 2026. This allows Cook to remain in her position for now.

Source Financial Times

The decision marks a victory for the Fed and a strong signal in defense of the central bank’s independence from political interference. Economists warned that granting Trump the power to remove Cook would have opened the door to pressuring other Fed policymakers who set interest rates.

Trump’s administration argues that Cook should be removed over alleged false statements in property documents. Cook’s lawyers counter that such a move would damage US economic stability and risk shaking confidence in financial markets.