The Supreme Court ruled that President Trump could not fire Federal Reserve governor Lisa Cook, significantly limiting presidential influence over the central bank. This decision represents a major setback for Trump's economic agenda. Chief Justice John Roberts emphasized the importance of maintaining stability and avoiding doubt regarding the status of such a crucial financial institution. Trump had attempted to fire Cook last year, citing alleged fraud in mortgage applications predating her Fed governorship. Cook, the first Black woman on the Fed board, was appointed to a 14-year term by former President Biden in 2022. Fed governors serve long terms to shield the institution from political influence, though the Federal Reserve Act allows a president to fire a governor for cause. Trump's attempt to remove Cook preceded a criminal investigation into former Fed chair Jerome Powell, which was later dropped. Powell, still on the Fed Board, expressed concern about the Trump administration potentially reopening a criminal probe over building renovations.