US Court Denies Trump’s Request to Dismiss Fed Director

This is the latest chapter in a legal battle that threatens the Fed’s independence: for the first time since its creation in 1913, a president is trying to remove a director from office. In practice, the court’s decision allows Cook to participate normally in the Fed’s monetary policy meeting scheduled for this Tuesday and Wednesday. The expectation is that the central bank will cut US interest rates, given a decelerating job market. The Appeals Court rejected the Department of Justice’s request to temporarily suspend a judge’s order preventing Trump from removing Cook, appointed by former Democratic President Joe Biden. The Trump administration is expected to appeal the decision to the US Supreme Court.