Truth Social

Chair

Polymarket

Reserve

Tom Lee

<p>The U.S. Supreme Court has blocked President Donald Trump’s bid to remove Federal Reserve Governor Lisa Cook, preserving the Fed Board’s current balance as the administration continues pushing for lower interest rates.</p>
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   <li>The U.S. Supreme Court has blocked President Trump’s attempt to remove Federal Reserve Governor Lisa Cook in a 5-4 ruling.</li>
   <li>Chief Justice John Roberts said the Court’s decision addresses legal standards, not whether Cook can ultimately be removed for cause.</li>
   <li>The ruling leaves Trump without a majority on the Fed Board as he continues to push for lower interest rates.</li>
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<p><a href="https://www.reuters.com/world/us-supreme-court-rejects-trumps-unprecedented-bid-fire-feds-cook-2026-06-29/" rel="noopener noreferrer nofollow">According</a> to the Court’s 5-4 decision, the justices rejected Trump’s effort to dismiss Cook over allegations of mortgage fraud, ruling that the legal dispute must proceed under the proper standards rather than allowing the president to remove a Fed governor without judicial review.</p>
<h2 class="wp-block-heading" id="court-says-removal-powers-remain-subject-to-legal-review">Court says removal powers remain subject to legal review</h2>
<p>Writing for the majority, Chief Justice John Roberts said accepting the administration’s position would effectively allow a president to dismiss a Federal Reserve governor at any time and for any reason, reducing statutory “for-cause” protections to little more than at-will employment.</p>
<p>Roberts added that the Court was not deciding whether Trump ultimately has legal grounds to remove Cook. Instead, he said the ruling addresses the legal framework that lower courts must apply before reaching that question.</p>
<p>“To be clear, the ultimate question of whether the President can remove Cook for cause will depend in part on the underlying facts,” Roberts wrote. “In this opinion, we have not addressed the facts, as they have yet to be found or analyzed under the relevant legal standards.”</p>
<p>The decision keeps Cook on the Federal Reserve Board while the legal proceedings continue, leaving Trump without a majority of governors despite changes elsewhere in the central bank’s leadership.</p>
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<h2 class="wp-block-heading" id="ruling-complicates-trump-s-push-for-lower-interest-rates">Ruling complicates Trump’s push for lower interest rates</h2>
<p>Soon after the ruling, Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/116834083672690020" rel="noopener noreferrer nofollow">responded</a> on Truth Social by arguing that the Supreme Court had sent the case back on procedural grounds rather than ruling on the merits. He added:</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>“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!”</p>
</blockquote>
<p>The decision also comes as Trump continues to call for lower interest rates. Although he appointed Kevin Warsh to succeed former Fed Chair Jerome Powell, Trump previously said he would not pressure Warsh over monetary policy and would leave interest-rate decisions to the Federal Reserve.</p>
<p>During his Senate confirmation hearing in April, Warsh <a href="https://crypto.news/kevin-warsh-news-trump-never-demanded-rate-cuts/" rel="noopener noreferrer nofollow">reinforced</a> that position by telling the Senate Banking Committee that Trump had never asked him to predetermine, commit to, or decide any interest-rate action before taking office. He added that he would never agree to such a request.</p>
<p>Even under Warsh’s leadership, the Federal Reserve kept <a href="https://crypto.news/kevin-warshs-fed-debut-jolts-crypto-as-rate-cut-hopes-fade/" rel="noopener noreferrer nofollow">interest rates unchanged</a> at its June FOMC meeting while maintaining a cautious stance on inflation, underscoring that policy decisions continue to be driven by economic conditions rather than White House preferences.</p>
<p>Cook’s continued presence on the Board means Trump still lacks the majority needed to reshape the Federal Reserve’s policy direction through appointments alone, making future interest-rate decisions dependent on votes within the central bank.</p>
<p>The ruling arrives as inflation remains a key concern for policymakers. As crypto.news previously reported, the <a href="https://crypto.news/kevin-warsh-holds-rates-steady-despite-fresh-inflation-fears/" rel="noopener noreferrer nofollow">Fed left interest rates unchanged</a> in June despite relatively hawkish economic projections from many officials.</p>
<p>Separate crypto.news <a href="https://crypto.news/bitcoin-triggers-1-48b-liquidation-wave-after-pce-inflation-fuels-rate-fears/" rel="noopener noreferrer nofollow">reporting</a> also noted that the latest Personal Consumption Expenditures inflation reading reached 4.1%, its highest level since 2023. Against that backdrop, Bank of America has <a href="https://crypto.news/bank-of-america-sparks-bitcoin-jitters-with-three-hike-forecast/" rel="noopener noreferrer nofollow">forecast</a> three rate hikes beginning later this year, while Polymarket currently assigns a 53% probability that the Federal Reserve raises rates before year-end.</p>
<figure class="wp-block-image size-full"><img width="996" height="504" src="https://media.crypto.news/2026/06/Polymarket-data.webp" alt="Polymarket chart showing the probability of a Fed rate hike in 2026 rising to 53%.">
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  Source: <a href="https://polymarket.com/event/fed-rate-hike-in-2026" rel="noopener noreferrer nofollow">Polymarket</a>
 </figcaption>
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<p>Read more: <a href="https://crypto.news/arthur-hayes-reveals-over-2-m-dollars-synapse-bet/" rel="noopener noreferrer nofollow"> Arthur Hayes reveals $2.2M Synapse bet as SYN price jumps </a></p>

U.S. Supreme Court blocks Trump bid to remove Fed Governor Lisa Cook

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