The US Supreme Court ruled on 29 June 2026 that President Trump lacked authority to immediately remove Federal Reserve Governor Lisa Cook from her position, preserving her role on the Fed board while her legal challenge proceeds. The court ruled 5-4 that statutory protections limiting presidential removal of Fed governors without cause remain in force, blocking Trump's attempt to terminate Cook, which the administration had tied to mortgage fraud allegations. The decision was reported by Marketwatch TOP, Guardian Business, Bloomberg Markets, and CNBC TOP.
The ruling directly concerns the institutional structure of the Federal Reserve, whose policy-setting board members hold fixed terms with removal protections established by statute. US Treasury markets and the US dollar index (DXY) are directly connected to this ruling, as the Federal Reserve's independence from executive interference bears on market expectations of monetary policy continuity. US equity index futures, including instruments tracking the S&P 500 (SPY, SPX) and Nasdaq-100 (QQQ), are similarly linked, as Fed governance disputes affect perceptions of central bank autonomy.
The Guardian Business reported the court found Trump did not have constitutional authority to remove Cook without cause, while Bloomberg Markets noted the 5-4 split decision allows Cook to remain in her position pending the outcome of her lawsuit. CNBC TOP confirmed the ruling allows her legal proceedings to continue without her immediate removal from the board.
Sources: Marketwatch TOP, Guardian Business, Bloomberg Markets, Cnbc TOP