US court rejects Trump bid to remove Fed governor Lisa Cook

The U.S. Supreme Court has dealt a blow to President Donald Trump's efforts to remove Federal Reserve Governor Lisa Cook from her post. In a significant decision, the court denied the government's request, allowing Cook to remain in her position pending further proceedings in lower courts.

The justices based their ruling primarily on the fact that Cook was not given a sufficient chance to address the accusations against her before the dismissal attempt. The majority also emphasized the long-standing tradition in the U.S. of an independent central bank, highlighting its crucial role in maintaining confidence in monetary policy and financial stability.

Trump has been vocal in his criticism of the Federal Reserve since taking office, frequently calling for lower interest rates to boost the economy. He notably targeted former Fed Chair Jerome Powell, publicly criticizing him and demanding his resignation. Trump's administration had sought to remove Cook last summer, citing alleged inaccuracies in mortgage contracts, a claim Cook has denied, stating any unintentional errors occurred years before her appointment.

This Supreme Court decision follows a series of legal setbacks for Trump's administration in this matter. Lower courts had previously issued temporary injunctions against Cook's dismissal, citing that the president could only remove a Fed board member for "urgent reasons" and not based on conduct predating their term. The public interest in the Fed's independence was also a key factor in these earlier rulings.