Supreme Court blocks Trump from firing Fed governor but permits other sackings

This article appeared as part of the Daily Sensemaker newsletter – one story a day to make sense of the world. To receive it in your inbox, featuring content exclusive to the newsletter, sign up for free here.

The US Supreme Court has ruled that Donald Trump can fire independent government regulators, despite blocking him from immediately sacking a governor of the Federal Reserve. The first decision represents a victory for Trump, since it significantly expands his presidential powers. The second is a small setback. Trump wants to oust Fed governor Lisa Cook over unproven allegations of mortgage fraud, but the justices decided she should be allowed to remain in post until her case is resolved. After the ruling, Trump vowed to continue his campaign against her and described this ruling as “procedural”. He has spent months attempting to coerce the central bank into lowering interest rates, threatening its independence. This should worry everyone. The status of the dollar as the world’s primary reserve currency means the Fed’s decisions influence global borrowing costs and commodity prices.