Supreme Court rules for Fed’s Cook in Trump feud

What happened

The Supreme Court Wednesday ruled that Federal Reserve Governor Lisa Cook can remain in her role while the justices consider the legality of President Donald Trump’s unprecedented effort to oust her from the central bank’s board.

Who said what

The court’s brief, unsigned decision to hear the case “sets up a showdown over the independence of the central bank” that could have “major ramifications for businesses and consumers,” The Washington Post said. Five of the conservative court’s nine members would have needed to approve Cook’s dismissal, so the ruling “signals hesitation from at least some of the justices” over Trump’s “aggressive campaign” to seize “tighter control over the Fed.”

The ruling was a “rare instance of Trump not quickly getting everything he wants from the justices in an emergency appeal,” The Associated Press said. It was “welcomed by former officials, economists and investors,” who are “very concerned” about Trump’s assault on the Fed’s “longstanding independence,” The New York Times said. Countries where central banks have “acted at the behest of a president” have typically ended up with “soaring inflation, lower growth and financial volatility.”

What next?

The Supreme Court is set to hear the case in January, leaving Cook able to participate in the Fed’s next two rate-setting meetings.

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