Woa!….
The Alito Court gives Trump a ‘Loss’ on this one….
Federal Reserve governor Lisa Cook can remain in her job at least through January as the Supreme Court hears a case over whether President Trump can fire her, the court said Wednesday.
Why it matters: It is a win for Cook and advocates of central bank independence, who believe that if she was temporarily removed without the matter being litigated, it would open the door for a president to fire any Fed governor for dubious cause.
- The Trump administration had asked for a stay of an appeals court ruling that Cook could remain in place, which was not granted.
- That means Cook will be allowed to participate in the remaining two Fed policy meetings of the year — and that Trump does not have a vacancy with which to appoint a new governor until at least early 2026.
Driving the news: “The application for stay presented to The Chief Justice and by him referred to the Court is deferred pending oral argument in January 2026,” per the court’s web site.
State of play: Trump said he was firing Cook for cause over alleged mortgage irregularities — applications for two separate home loans each describing the purchase as for a primary residence. The accusations have not been adjudicated in court.
- The Federal Reserve Act says the president can fire a Fed governor for cause, but does not specify what constitutes cause or who gets to decide whether that standard is met.
- Economists of both parties have argued that if the president can unilaterally decide what constitutes cause, it would amount to the end of the Fed’s statutory independence, which is meant to insulate the central bank from day-to-day political considerations
image…Axios