For years, President Donald Trump has argued that the Federal Reserve has stood in the way of his economic agenda by keeping interest rates elevated despite mounting pressure from the White House to lower borrowing costs for American families and businesses.
Now, a sharply divided 5-4 decision from the U.S. Supreme Court has delivered what critics are calling an unprecedented layer of protection for Federal Reserve Governor Lisa Cook, a Biden appointee whose attempted removal has sparked a major constitutional battle over presidential authority.
Supporters of Trump say the most significant part of the ruling wasn’t simply that Cook remains on the Federal Reserve Board for now. Instead, they argue the key takeaway is language written by Chief Justice John Roberts that appears to carve out unique constitutional protections for the Federal Reserve—protections that may not apply to most other independent federal agencies.
