Trump loses Supreme Court case over firing of Federal Reserve governor
The U.S. Supreme Court narrowly ruled against President Donald Trump in his attempt to fire a Federal Reserve governor.The court voted 5-4 to deny the president's request to stay a lower court's injunction that prevented him from firing Federal Reserve governor Lisa Cook, and the majority rejected the government's argument that the president's decision was not reviewable by the courts."Acceptance of the Government’s position would in effect transform the Federal Reserve’s for-cause protection into at-will employment — an interpretive leap out of step with the statute Congress enacted and our Nation’s tradition of central banking protected from political interference," wrote Chief Justice John Roberts for the majority.The court rejected the government's view that any concern about "conduct, ability, fitness, or competence" suffices and also rejected Cook's view that "cause" is limited to a fixed list of statutory categories. Instead, they ruled, given the Fed's unique constitutional design and importance to economic independence, "cause" requires a serious showing — not just a pretext to install a "more congenial" replacement.Justice Clarence Thomas in his dissent said he would have ruled for Trump entirely and argued that Cook's alleged mortgage fraud clearly counted as a justifiable cause for firing, and he was joined in the minority by Trump-appointed justices Neil Gorsuch and Amy Coney Barrett, as well as fellow conservative Justice Samuel Alito.
