Supreme Court Rules President Cannot Fire Fed Governor Without Cause

Regulation

โดย The Motley Fool·Read original

Summary · why it matters

The Supreme Court ruled this week that the president cannot fire a Federal Reserve governor without cause, affirming the central bank's unique independence from the executive branch. The decision stems from President Donald Trump's attempt to remove Fed Governor Lisa Cook over mortgage fraud allegations she denies, with an ongoing Justice Department investigation. Chief Justice John Roberts wrote that both the fact and appearance of independence are key to the Fed's design, as political pressure to cut rates can fuel inflation expectations and harm markets. Economic research shows low central bank independence raises crash risks, while the ruling, decided five to four, offers investors relief though Trump vowed to seek other ways to oust Cook.