US Supreme Court to review legality of Trump's interference in Federal Reserve operations
Kyiv • UNN
The US Supreme Court will hear a case concerning Donald Trump's attempt to dismiss Federal Reserve Board Governor Lisa Cook. This will determine the limits of White House influence on monetary policy.
The US Supreme Court is preparing to hear a case regarding President Donald Trump's attempt to dismiss Federal Reserve (Fed) Board of Governors member Lisa Cook. This process will be a key test for the central bank's independence and will define the limits of the White House's influence on monetary policy. This is reported by Reuters, writes UNN.
Details
Donald Trump is trying to strengthen control over financial institutions. Lisa Cook's case is already the second major economic dispute to reach the Supreme Court after the legality of the president's global import tariffs was considered.
Lawyers note that such court intervention in economic policy has not been observed since Franklin Roosevelt's "New Deal" in the 1930s.
Risks of political pressure
Experts warn that turning the Fed into a politically dependent body could have catastrophic consequences for the stability of the dollar.
It seems to be a basic principle of macroeconomics, backed by the experience of other countries, that political control over the money supply, interest rates, and the central bank will inevitably lead to inflation.
Expected decisions
Although the court's conservative majority (6 to 3) has often supported Trump's initiatives in the past, the judges express skepticism about expanding presidential powers in the economic sphere. Final decisions in the cases regarding tariffs and Lisa Cook's dismissal are expected by the end of June 2026.