US Supreme Court blocks Trump's bid to fire Fed Governor Lisa Cook

The US Supreme Court has blocked an attempt by President Donald Trump to dismiss Federal Reserve Governor Lisa Cook, leaving her in place while the legal battle continues. The court's order pauses the removal and returns the underlying dispute to the lower courts for further argument.

The decision was described by analysts as a victory for the principle of central bank independence, a long-standing convention that shields monetary policymakers from direct political pressure. Investors had been watching the case closely, concerned that the ability to fire a governor could erode confidence in the Fed's autonomy.

The fight over Cook's position is not over. By sending the matter back to lower courts, the justices left open the question of whether and how a sitting governor can be removed. Markets reacted calmly, though traders said the ruling reduced near-term uncertainty around the central bank's leadership.