US supreme court rules Trump’s firing of Lisa Cook from Fed was unconstitutional

Key Points:

• The US Supreme Court ruled 5-4 that Donald Trump cannot immediately fire Federal Reserve governor Lisa Cook without following proper procedural protections, preserving her position amid unproven mortgage fraud allegations.
• Lisa Cook, a Biden appointee and the first Black woman on the Fed's board, was abruptly dismissed by Trump last August, who accused her of mortgage fraud—a claim she denies and has legally challenged.
• This ruling marks a significant limitation on presidential authority over the Federal Reserve, contrasting with the court's broader allowance of Trump's power in other federal agency removals during his second term.
• The decision underscores the court's commitment to maintaining the Fed's independence, a principle critical to economic stability, especially as Trump had publicly pressured the central bank to lower interest rates.
• The Federal Reserve, established in 1913, operates with considerable autonomy despite being part of the executive branch, and its governors, including Cook, play a key role in setting interest rates that influence the US economy.