U.S. Supreme Court Blocks Trump's Bid to Remove Fed Governor Lisa Cook

The U.S. Supreme Court has blocked President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, a decision widely viewed as reinforcing the independence of the U.S. central bank.

Federal Reserve Governor Lisa Cook retained her position after the U.S. Supreme Court blocked President Donald Trump's attempt to remove her. (Photo: Board of Governors of the Federal Reserve System Facebook)

In a 5-4 ruling, the court said the administration had not provided Cook with sufficient due process to challenge her dismissal, Natalie Sherman and Francisco Velasquez reported for BBC News.

The decision returns the case to the lower courts, where the administration must prove its allegations that Cook committed mortgage fraud if it wishes to proceed with her removal.

Cook will also have the opportunity to contest the allegations.

Cook has denied the accusations, which supporters of the Federal Reserve argue are a pretext for giving Trump greater influence over the central bank.

Under U.S. law, a president may remove a Federal Reserve governor only "for cause," a safeguard intended to protect the central bank from political interference and preserve its independence in setting monetary policy.

During arguments before the court in January, Cook's attorney, Paul Clement, argued that the administration's handling of the case would render Congress' intended protections for the Federal Reserve "kind of a joke."