The Supreme Court's decision blocking President Trump from firing Fed governor Lisa Cook sets a pretty firm precedent that the bar for removing an official is slightly higher, says Michael Pearce, chief US economist at Oxford Economics. "I think that's kind of the key takeaway here for Fed independence and for the financial markets," Pearce says. "One thing I do wonder whether it changes is the timeline for Jerome Powell," Pearce said, referencing Powell's decision to stay on the board as a governor. Part of Powell's reason for staying was to ensure the Fed could operate without political interference. (jessica.coacci@wsj.com)
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Bar for Removing Fed Officials is Higher After Cook Ruling — Market Talk
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The Supreme Court's decision blocking President Trump from firing Fed governor Lisa Cook sets a pretty firm precedent that the bar for removing an official is slightly higher, says Michael Pearce, chief US economist at Oxford Economics. "I think that's kind of the key takeaway here for Fed independ…