US Daily Commentary: Economics - North America

Research evidence excerpt

US Daily Commentary: Economics - North America

Global Markets Research

29 June 2026US Daily Commentary

Economics - North America

Research Analysts

Review & Preview North America Economics

Review Aichi Amemiya - NSI aichi.amemiya@nomura.com

SCOTUSrulingonGovernorCook’scase: The Supreme Court ruled that Fed +1 212 667 9347

Governor Lisa Cook can remain on the Board, rejecting the Trump administration’s bid to Jeremy Schwartz - NSI

remove her. Chief Justice Roberts and Justice Kavanaugh joined the Court’s three liberal jeremy.schwartz@nomura.com

justices in a 5-4 decision in Cook’s favor. +1 212 667 9637

The ruling appears to be premised on procedural grounds. The Court did not decide Ruchir Sharma - NSI

whether the allegations cited by the administration would satisfy the Federal Reserve Act’s ruchir.sharma@nomura.com

+1 212 667 9186“for cause” removal standard. Instead, it noted that the ultimate question of whether the

President can remove Cook for cause depends partly on the underlying facts, which the

Court did not address in its verdict.

This leaves some ambiguity around the scope of “cause.” In principle, the administration

could attempt to restart the process with stronger procedural safeguards. That said, the

decision also underscored the Fed’s unique institutional status.The Court emphasized that

the Fed’s independence and the "appearance of independence" is key to its design.

Notably, the Court stated that while the President has statutory authority to remove a Fed

Governor “for cause,” that authority does not permit removal for any reason, or no reason.

It also reaffirmed that courts retain the responsibility to independently interpret statutory

limits on executive discretion and ensure that Congress’s design is respected, subject to