"The Supreme Court has temporarily blocked President Trump's attempt to fire Federal Reserve Governor Lisa Cook, maintaining a critical firewall for now around the central bank's ability to make decisions without political interference from the White House. That means Cook can stay in her job at least until the high court hears oral arguments in the case in January."
""Less independent central banks around the world have at times prioritized such small, short-run gains, resulting in substantial long-term harm and inferior economic performance overall," wrote a group of former Treasury Secretaries, Fed governors and prominent economists in a friend of the court brief. "Central bank independence is the solution that Congress and the President have chosen, effectively tying their hands, like Ulysses as he passed the sirens, to protect against the risk that monetary policy will be mishandled.""
"For months, Trump has been urging the Fed to adopt sharply lower interest rates in hopes that it would help boost economic growth while also reducing the government's own borrowing costs. That's precisely the sort of short-term pressure that the central bank is designed to be insulated from."
The Supreme Court temporarily blocked President Trump's attempt to fire Federal Reserve Governor Lisa Cook, keeping her in place until oral arguments in January. The order preserves a critical firewall that limits White House interference with Fed decision-making. The conservative court indicated willingness to consider some constraints on presidential removal power even as it has allowed broad authority over other independent agencies. Critics warned that allowing the firing would undermine decades of research showing central banks perform best when insulated from political pressure. Trump had pressured the Fed to cut rates and sought to install more hand-picked governors after an early vacancy.
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