WASHINGTON (AP) — The U.S. Supreme Court on Monday rejected President Donald Trump's effort to immediately remove Federal Reserve Governor Lisa Cook, ruling that the administration had not followed the procedural requirements established by law before attempting her dismissal. The 5-4 decision allows Cook to remain on the Federal Reserve Board while lower-court proceedings continue, marking a rare instance in which the court declined to extend presidential removal authority to one of the nation's most influential economic institutions. The case stemmed from allegations of mortgage-related misconduct raised by the administration, allegations that Cook has denied.

The decision preserves, at least for now, a longstanding principle that the Federal Reserve operates with substantial independence from direct political control. Established by Congress in 1913, the central bank is responsible for setting monetary policy, regulating parts of the financial system and pursuing mandates related to price stability and employment. Chief Justice John Roberts wrote for the majority, joined by the court's three liberal justices and Justice Brett Kavanaugh. The ruling emphasized that Cook had not received the procedural protections required under federal law before the attempted removal, leaving unresolved broader questions about whether a president may ultimately remove a Federal Reserve governor under certain circumstances.