Trump unleashes as his Fed plan dealt a major blow

June 30, 2026 — 11:59am

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The US Supreme Court has preserved the independence of the Federal Reserve Board, for now, but by the narrowest of margins.

In a 5-4 decision, the court’s majority ruled that Fed governor Lisa Cook – who Donald Trump had purported to sack on the basis of  allegations of mortgage fraud – could remain on the board until the allegations had been tested and Cook given the opportunity to defend herself.

The judgment – and a concurrent ruling that a president has complete authority over every other government agency – confirms the unique status of the US central bank, which Chief Justice John Roberts rightly described as one of America’s and the world’s most important financial institutions.

It’s a setback for Trump, who had sought to remove Cook (via a social media post) and former Fed chair Jerome Powell from the board, based on allegations levelled by Trump loyalist Bill Pulte, the former director of the Federal Housing Finance Agency and now acting director of national intelligence. Trump wanted to get rid of Cook and Powell to stack the seven-member Fed board with more amenable appointees.

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Undaunted, Trump has vowed to continued with his pursuit of Cook. He posted on Truth Social that the “Cook lawsuit” had been “sent back” by the Supreme Court on “strictly procedural” grounds, and that he would take immediate action to make sure that “someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!”

The Supreme Court majority, however, thought it unlikely that the........

© The Sydney Morning Herald