WASHINGTON (AP) — The Supreme Court on Monday said the Federal Reserve, unlike any other agency in Washington, has a measure of independence from the presidency and day-to-day politics. But the court didn’t define to what extent.The case is the latest round in an unprecedented fight between the Fed and President Donald Trump. More political interference at the Fed could upend financial markets around the world, which closely follow its interest rate moves.Trump has repeatedly demanded that the central bank cut its key interest rate to lower borrowing costs for homeowners, businesses, and even the government itself. Trump sought to fire a Fed governor, Lisa Cook, last August after accusing her of mortgage fraud — a charge she denies. Cook was appointed by former President Joe Biden and removing her would give Trump the opportunity to name a more amenable official in her place.
In a 5-4 decision, the court ruled that the president cannot fire the seven members of the Fed’s board of governors without a clear cause. The decision endorses the Fed’s independent structure even as the court eliminated such protections for leaders of other agencies, including the Federal Trade Commission, whom the president can fire at-will.
