US Supreme Court blocks Trump's bid to fire Fed Governor Lisa Cook
On Monday, the US Supreme Court declined President Donald Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook, thereby upholding the autonomy of the central bank. In a narrow 5-4 decision, the court thwarted Trump’s bid to be the first president to remove a Fed official since the institution's establishment in 1913. Chief Justice John Roberts, a conservative, along with fellow conservative Justice Brett Kavanaugh, sided with the three liberal justices in the majority. Dissenting were conservative justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett. Roberts stated that Trump did not provide Cook with the necessary procedural safeguards mandated by law, emphasizing that Federal Reserve Governors serve staggered 14-year terms and can only be removed 'for cause.' This ruling highlights the longstanding independence of the Federal Reserve and its historical predecessors.
Key facts
- US Supreme Court rejected Trump's bid to fire Fed Governor Lisa Cook on Monday.
- The ruling was 5-4, with Chief Justice John Roberts and Justice Brett Kavanaugh joining liberal justices.
- Dissenting justices were Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett.
- Trump sought to become the first president to remove a Fed official since 1913.
- Roberts wrote that Cook was entitled to procedural protections and could only be removed 'for cause.'
- Federal Reserve Governors serve staggered 14-year terms.
- The decision preserves the Federal Reserve's independence.
- The ruling cited historical precedents from the Bank of North America and the First and Second Banks of the United States.
Entities
Institutions
- US Supreme Court
- Federal Reserve
- Bank of North America
- First Bank of the United States
- Second Bank of the United States
Locations
- United States