The U.S. Supreme Court rejected President Trump's request to immediately remove Federal Reserve Board member Jerome Powell by a 5-4 vote. The U.S. stock market's three major indexes turned higher within the day.

The Supreme Court of the United States on Monday voted 5-4 to reject President Trump's request to immediately remove Federal Reserve Board Governor Lisa Cook from her position, allowing her to continue serving during the ongoing litigation. This ruling is seen by the market as the latest development in maintaining the independence of the Federal Reserve, and also means the President does not have the authority to unilaterally remove Federal Reserve Board members without sufficient reasons. According to the ruling, Chief Justice John Roberts, along with Justices Sonia Sotomayor, Elena Kagan, Brett Kavanaugh, and Ketanji Brown Jackson, formed the majority opinion to reject the Trump administration's request for a stay by a 5-4 vote. Meanwhile, Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Amy Coney Barrett dissented. Trump had previously announced the removal of Cook and accused her of mortgage fraud. Cook denied the allegations and filed a lawsuit challenging the President's decision to dismiss her. The Supreme Court did not make a final ruling on the substantive issues of the case, but found that the Trump administration failed to prove a strong likelihood of success on the legal merits, allowing Cook to continue serving as a Federal Reserve Board member until the litigation is resolved. In the majority opinion, Roberts stated that the government argued that the President's decision to dismiss for cause is not subject to judicial review, but this view lacks support in the laws set by Congress relating to the Federal Reserve. Roberts wrote: "The courts have not seen fit to give the law such a construction". The Court pointed out that while the President has the authority to remove Federal Reserve Board members in accordance with the law, this does not mean that the President can do so for any reason, or even without reason. The majority opinion also stated that current laws do not preclude judicial review of the President's decision to dismiss Federal Reserve Board members. In contrast, Thomas, in his dissenting opinion, argued that the Federal Reserve Board is a federal executive agency, and the President has the authority under the law to dismiss officials suspected of unlawful behavior. He also stated that the relevant laws do not require the President to provide notice or hold a hearing before dismissing a Federal Reserve Board member, so Cook does not have such procedural safeguards. Analysts believe that this ruling once again strengthens the institutional status of the Federal Reserve as an independent central bank, and limits the ability of the executive branch to directly intervene in the personnel arrangements of the monetary policy decision-making body. In the market, following the announcement of the ruling, major US stock indices turned from losses to gains. As of the time of writing, the S&P 500 index rose 0.73%, the Nasdaq index rose 1.32%, and the Dow Jones Industrial Average rose 0.44%. Market participants generally view this ruling as helpful in maintaining the independence of Federal Reserve policy, thereby alleviating concerns that monetary policy may be influenced by political factors.