Court Upholds Fed Independence in Trump vs. Cook Battle

In a landmark ruling on Monday, a U.S. appeals court denied President Donald Trump's bid to dismiss Federal Reserve Governor Lisa Cook. This marked the first presidential challenge against the Fed's longstanding independence since its inception in 1913. The ruling comes amidst a heated legal duel over political control of the central bank.

The U.S. Court of Appeals for the District of Columbia Circuit issued the decision hours before a pivotal Fed policy meeting where interest rate cuts are anticipated. The White House has announced its intention to appeal the decision to the Supreme Court. Trump's administration asserts that Lisa Cook was removed 'for cause,' a notion the court rejected based on due process grounds.

Judge Bradley Garcia, joined by Judge J. Michelle Childs, found Cook's constitutional claims likely warranted and emphasized procedural shortcomings in her dismissal. The ruling holds significant consequences for the Fed's autonomy, as maintaining distance from political influence is crucial for its effectiveness in managing inflation and economic policy.

(With inputs from agencies.)