US Supreme Court Blocks Trump from Firing Fed Governor
The US Supreme Court declined on Monday to let Trump fire Federal Reserve governor Lisa Cook. The 5-4 ruling strengthens the Federal Reserve's independence.
But the court left open whether Trump could fire Cook later for cause. The court found Trump did not follow required legal steps before firing her.
Those steps include telling her the charges and letting her respond. Trump accused Cook of mortgage fraud.
Cook denies this. Bank documents appear to contradict Trump's claim.
Cook was the first Federal Reserve governor ever fired in the bank's 111-year history. Her lawsuit against Trump will continue in lower courts.
The same day the court gave Trump power to fire heads of other independent federal agencies. That ruling overturned a landmark 1935 decision that had limited presidential firing power. The Federal Reserve was the only exception.
Key Terms 3
- Federal Reserve The US central bank that controls interest rates and money supply
- Independent federal agency A US government body that operates separately from direct presidential control
- Humphrey's Executor A 1935 law that limited the president's power to fire agency heads