SCOTUS blocks Trump from immediate firing of Fed’s Cook

Investing.com -- The US Supreme Court ruled on Monday that President Donald Trump cannot immediately remove Federal Reserve Governor Lisa Cook from her position.

The court voted 5-4 to allow Cook to remain in her role while she contests Trump's attempt to remove her based on unproven mortgage fraud allegations. Chief Justice John Roberts and Justice Brett Kavanaugh sided with the three liberal justices in the majority decision.

The justices determined that Trump failed to provide Cook with proper notice and an opportunity to respond before attempting to remove her from her position. The court did not rule on whether the allegations, if proven true, would constitute sufficient grounds for removing Cook during her 14-year term.

Trump sought to fire Cook over allegations that she committed mortgage fraud before her appointment to the Federal Reserve. Cook maintains that these allegations are unproven and serve as a pretext to circumvent the Fed's "for cause" removal protections. She argued the administration aims to replace her with someone more loyal to Trump.

The case marks the latest in a series of legal challenges concerning the Federal Reserve's independence from the White House. The court had previously taken steps to protect the Fed from Trump's efforts to gain control over the central bank.

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