US Stock Market: US Supreme Court shields Fed independence, but leaves central bank more isolated

The US Supreme Court declined to allow President Trump to remove Federal Reserve Governor Lisa Cook while legal proceedings continue, establishing that dismissals of Fed governors must meet a high legal threshold tied to official duties. In a separate ruling, the court expanded presidential authority to remove leaders of independent regulatory agencies like the FTC, but carved out an exception preserving the Fed's special status under the Federal Reserve Act of 1913. The decision removes immediate risk to Fed leadership stability but legal scholars warn it may invite future challenges to the central bank's unique independence.