The Supreme Court has ruled that Federal Reserve governor Lisa Cook can remain in her job for now, hobbling President Donald Trump's bid to assert control over the nation's central bank. This was reported by Qazaqyia.kz citing Associated Press.
The court on Monday dramatically expanded presidential power, upholding President Donald Trump's firings of the heads of independent federal agencies with one important exception: the Federal Reserve. The justices allowed Fed governor Lisa Cook to stay in her job while she fights the Republican president's effort to fire her over allegations of mortgage fraud, which she has denied.
But other than at the nation's central bank, with its role of setting interest rates, the court held that presidents have free rein to fire agency heads at will, despite federal laws that require a cause for such dismissals and a 91-year-old decision that had limited executive authority.
With the six conservative justices in the majority, the nine-member court jettisoned its unanimous decision in Humphrey's Executor that had limited when presidents can fire agencies' board members. "We hold that such protection from removal is contrary to the separation of powers enshrined in the Constitution," Chief Justice John Roberts wrote for the court.
The justices ruled in the case of former Federal Trade Commission member Rebecca Slaughter, whom Trump fired without cause despite a provision of federal law that requires a reason. The logic of the decision extends to other agencies, including the National Labor Relations Board, the Merit Systems Protection Board and the Consumer Product Safety Commission, where Trump also has fired board members.
Trump voiced his approval in a Truth Social post. "It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers," he wrote.
The court already had signaled its support for the Trump administration's position.