The Supreme Court on Wednesday reportedly dealt a setback to President Donald Trump, declining for now to grant his request to immediately remove Federal Reserve Governor Lisa Cook. Instead, the justices said Cook may remain in her post until oral arguments are heard in January on whether the president has the legal authority to fire her.
The decision prolongs a dispute that Trump has pressed for months, one that goes to the heart of presidential authority over powerful but unelected regulators. The president has repeatedly asked federal courts to allow him to terminate Cook “without delay,” but those efforts have so far been blocked.
Cook, a Democratic appointee, has become a lightning rod on the Fed’s Board of Governors. Conservatives have long criticized her as a political actor in what is supposed to be an independent body, citing her past advocacy on progressive causes.
Trump, who has made reshaping the nation’s institutions a signature of his presidency, has argued that presidents must have the authority to remove officials like Cook if they are undermining the public’s trust in the Fed.
By keeping Cook in place until at least early next year, the Supreme Court has effectively tied the president’s hands in his effort to ensure accountability at the central bank.
The ruling leaves open questions about how much control any president can exercise over an institution that wields enormous influence over the economy, interest rates, and financial stability.
This story is developing…
[READ MORE: James Comey Indicted by Justice Department]
