Following Supreme Court backing his powers to fire members of independent government agencies, US President Donald Trump said on Monday that he will take action against Federal Reserve Governor Lisa Cook, saying his administration is committed to ensure that such people are not involved in decision making in the United States.
“The Cook Lawsuit, having to do with her suitability in sitting on the Board of the Federal Reserve, was sent back by the Supreme Court on a strictly procedural basis, he said on Truth Social, “we will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!”
Cook was fired by Trump in August last year, but she challenged the decision in the Supreme Court, arguing that the US President does not have the legal authority to remove a Federal Governor without a clause. On Monday, the apex court blocked Trump’s bid to fire Cook in a 5-4 verdict.ย
In its ruling, the US top court said Trump can fire Federal Reserve governors for cause, but that cannot be done “for any reason or no reason”. It said Trump failed “afford Cook the procedural protections”, which was entitled to her.ย
“Not only the fact of independence but also the appearance of independence is key to the Federal Reserve’s design,” the verdict read. “We see no reason to leave the public in limbo, or to sow doubt as to the status of one of our Nation’s (and the world’s) most important financial institutions.”
Trump still has power to fire officials
However, the Supreme Court has ruled that Trump still has powers to fire members of independent government agencies. In a separate 6-3 verdict, the court the President has the power to fire “subordinates who exercise the President’s power”, rejecting a plea by Democratic Federal Trade Commissioner Rebecca Slaughter.
Like Cook, Slaughter was also removed by Trump without a cause, but Chief Justice John Roberts said independent agencies are not entirely free of the President and responsive only to the American people.
Though the Democrats criticised the verdict, Trump hailed it and said the decision has expanded presidential power “at a time when it is most needed”.
“This Decision was long sought by United States Presidents, dating all the way back to the 1930s,” Trump said in a social media post. “It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers.”
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