The US Supreme Court has reaffirmed the independence of the Federal Reserve, offering protection to its policymakers from arbitrary dismissal by the president. However, legal experts say the court's twin rulings this week have also left the central bank increasingly isolated, as it may now stand as the only major federal agency retaining significant insulation from direct presidential control, according to Reuters.
In one decision, the court declined to allow President Donald Trump to remove Federal Reserve Governor Lisa Cook while legal proceedings over allegations of mortgage fraud continue. The ruling established that any attempt to dismiss a Fed governor would have to meet a high legal threshold, requiring proof of serious misconduct directly connected to official duties, Reuters reported.
