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Or sign-in if you have an account.The administration accuses Lisa Cook of fraudulently listing homes in Michigan and Georgia as a “primary residence” to secure more favourable terms on loans when she obtained mortgages in 2021. Photo by Kevin Dietsch/Getty ImagesThe United States Supreme Court reinforced the Federal Reserve’s independence from the White House, protecting governors from being fired by the president without proof of wrongdoing.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Fed shield came even as the court in a separate ruling expanded the president’s power to fire top government officials at other federal agencies in a blockbuster ruling that overturns a 91-year-old precedent.Voting five to four, the high court said Fed Governor Lisa Cook can stay in her job while she fights Trump’s bid to oust her over unproven mortgage fraud allegations. The justices faulted Trump for not giving Cook notice and a chance to be heard before trying to remove her from her position.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againWriting for the court, Chief Justice John Roberts said that “monetary policy should not be subject to political interference.” He and Justice Brett Kavanaugh joined the three liberals in the majority.The court stopped short of saying whether the allegations, if true, would be sufficient grounds for removing Cook in the midst of her 14-year term. Roberts said the court was ruling “on narrow grounds.”The narrow focus of the decision means the case could return to the Supreme Court at a later point.Roberts left open the possibility of Trump “trying again, if he chooses to do so” to fire Cook.Cook said in a statement the ruling “affirms a principle that has underpinned sound economic stewardship for generations: that the Federal Reserve must make all its policy decisions guided by evidence and independent judgment, free from political interference.”Regarding the Cook ruling, Trump said on social media Monday “we will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!” Lisa Cook Photographer: David Paul Morris/BloombergThe administration accuses Cook of fraudulently listing homes in Michigan and Georgia as a “primary residence” to secure more favourable terms on loans when she obtained mortgages in 2021. Cook has said the claims are baseless and rely on “cherry-picked, incomplete snippets” of documents. The veracity of the allegations wasn’t before the Supreme Court, and Cook has not been charged with any wrongdoing.The Federal Reserve declined to comment.The cases tested the Supreme Court’s commitment to the central bank’s autonomy. The court previously had moved to shield the Fed from Trump’s efforts to seize control, but the Cook case presented a new set of legal issues.The other ruling lets Trump fire Democratic Federal Trade Commission member Rebecca Kelly Slaughter despite a law that says commissioners can be removed only for specified reasons. In his majority opinion in that case, Roberts reiterated previous suggestions that the Fed is different from other federal agencies because of its role in setting monetary policy, something that has traditionally been independent from the White House.A Trump victory in the Cook case might have opened a path for him to remove other Fed governors who haven’t heeded his calls to slash interest rates, perhaps even letting the president reshape the central bank by ousting and replacing officials. Trump has openly mused about firing Jerome Powell, who remains on the Fed’s Board of Governors even though his term as chair has expired.The ruling comes less than two weeks after Fed officials finished their first policy meeting under their new chair, Kevin Warsh. Despite ongoing pressure from Trump to lower interest rates, the central bank held its benchmark rate steady at the gathering. A recent acceleration in inflation has raised concerns among some Fed officials that they may need to raise borrowing costs in the coming months to contain those price pressures.The Federal Reserve Act bars presidential removal of governors except “for cause.” A key question in the Cook case is how, if at all, that provision applies to actions taken before someone became a Fed governor.—With assistance from Enda Curran. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.