Fed Independence Goes to Court

Trump loses his case to fire Lisa Cook, but it’s likely headed to the Supreme Court.

WSJ editorial. Excerpts:

"The Federal Reserve Act provides members of the Fed board with staggered 14-year terms and lets the President remove them only “for cause,” which isn’t defined by the law."

"“for cause” may have a broader sweep than wrongdoing in office. The High Court this spring also allowed Mr. Trump to fire a Democratic member of the NLRB notwithstanding removal protections (Trump v. Wilcox).

But the Court also noted in dicta that its ruling did not “necessarily implicate the constitutionality of for-cause removal protections” for the Fed, which “is a uniquely structured, quasi-private entity that follows in the distinct historical tradition.”"

"its [the Fed] control over monetary policy is unique.

Mr. Trump is challenging legal norms as he aggressively uses executive power. He’s won many cases, but this one is no easy call."