The U.S. Supreme Court is poised to assess the legality of Donald Trump‘s attempt to remove Lisa Cook from the Federal Reserve, raising questions about the central bank’s independence.
Trump’s Dismissal Of Lisa Cook
According to a Reuters report, the Supreme Court will deliberate on the legality of Trump’s effort to dismiss Fed Governor Lisa Cook, challenging the extent of presidential power over U.S. monetary policy.
The court, with a 6-3 conservative majority, is reviewing the case during its current term, which began in October. A decision is anticipated by June. This follows a previous case concerning Trump’s global tariffs, where justices expressed skepticism about their legality.
Cook’s Lawsuit
Cook, appointed by former President Joe Biden, filed a lawsuit against Trump after he accused her of mortgage fraud, a claim she refutes. The outcome could affect the Fed’s independence, as the Federal Reserve Act was designed by Congress to shield the central bank from political influence.
Legal experts suggest the court’s ruling may focus on preserving the Fed’s independence, a principle deemed vital for economic stability. The court has allowed Cook to remain in her role during the ongoing litigation.
Court’s Support For Trump
Recently, the court’s conservative majority has shown support for Trump’s efforts to exert more control over independent federal agencies, potentially overturning a long-standing precedent from 1935. This trend could influence the outcome of the current case involving the Federal Reserve.
Moreover, the court’s delay in ruling on Trump’s tariff policies has raised speculation about a potential favorable outcome for Trump.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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