Supreme Court Refuses to Let Trump Immediately Oust Fed's Cook

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Transcript

00:00Michael McKee joins us now here at the desk, our international policy and economics correspondent.

00:06So, Mike, what do we know from the Supreme Court?

00:08This is a decision that's only temporary until they hear the case in January.

00:12Well, basically what it is, is without saying so directly,

00:15they're denying Donald Trump's request for a stay on the lower court decision that keeps her in her position.

00:23Basically, the Supreme Court is saying that the application is deferred pending an oral argument in January of 2026.

00:33So basically they're saying you cannot fire her until we hear more in January of 2026.

00:41And so it looks like that case is going to go to the court.

00:44It doesn't say that they have granted cert here, but it does sound like they want to hear more about it.

00:51It is a rare loss for the administration in front of this court.

00:57I think Greg Storr, our Supreme Court reporter, put out a story a few weeks ago saying at that point,

01:02the Trump administration had either won or not lost 19 out of 21 shadow docket cases.

01:08So it is slightly surprising that they wouldn't allow him to do this.

01:13Well, not as surprising because they did carve out in the Wilcox case an exception for the Fed,

01:19saying it was a quasi private organization that had a long tradition in the United States.

01:26And so there was some feeling that they might give the Federal Reserve a slightly different view

01:32in terms of the president's authority over the governor's.

01:35They have not decided that authority yet, but they have put off a decision on it,

01:40which means, in effect, she keeps her job at least through January of 2026.

01:45And then I would imagine longer because if they do oral arguments and grant certiorari and take the case,

01:51then it will go into the probably June or July release of the final orders by the court.

02:00And just quickly, just to clarify, the Supreme Court remains open.

02:05The federal court system remains open for business amidst this shutdown.

02:09That is correct. The Supreme Court is funded by non-appropriated funds

02:18and can keep operating because it doesn't need essentially permission to spend money from the Congress.

02:25But the lower court systems, they run similarly, but they do run out of money.

02:31It is possible that they will have to cut back on some of their activities, but that's down the road.

02:35And the Fed, as you were telling me this morning, as well, is self-funded.

02:39So they stay open and you don't have to worry about that.

02:42All right. Michael McKee, our international policy and economics correspondent.