The Supreme Court said Monday that President Trump could not fire Federal Reserve governor Lisa Cook, a blockbuster ruling that limits the president’s influence on the central bank. 

Why it matters: It is among the bigger blows delivered by the top court to Trump’s economic agenda.

What they’re saying: “We see no reason to leave the public in limbo, or to sow doubt as to the status of one of our Nation’s (and the world’s) most important financial institutions,” Chief Justice John Roberts wrote.

• “Although we appreciate that others may see matters differently, we would not so quickly unsettle this ‘special arrangement sanctioned by history.'”

Flashback: Trump said last year that he was firing Cook for cause, citing mortgage applications from before she was a Fed governor.

• Trump said the documents show fraud for claiming two separate homes as a primary residence, a claim that has not been affirmed by lower courts.
• Cook, the first Black woman to serve on the Fed board, was appointed to a 14-year term by former President Biden in 2022.

Between the lines: Fed governors are appointed to lengthy terms to insulate one of the world’s most influential economic bodies from political influence.

• But the Federal Reserve Act allows the president to fire a governor for cause, though none except President Trump has ever attempted to do so.

What to watch: Trump’s attempt to fire Cook last year came months before former Fed chair Jerome Powell said the Department of Justice had launched a criminal investigation into his conduct.

• The Department of Justice said in April that it planned to drop that criminal probe, a sharp reversal that opened the path for Trump’s Fed pick Kevin Warsh to be confirmed to lead the central bank.
• But Powell is remaining on the Fed Board of Governors — his term as a governor expires in Jan. 2028 — calling out what he sees as an ongoing threat by the Trump administration to reopen a criminal investigation over the Fed’s building renovations.