Analysis: Cook ruling consolidates the independence of the Federal Reserve or benefits Walsh

On June 30, the Wall Street Journal analyzed that although Federal Reserve Governor Cook became the direct winner in the Supreme Court's ruling, the biggest beneficiary may be Walsh, who just became chairman of the Federal Reserve in May. The U.S. Supreme Court ruled to prevent President Trump from removing Cook, reaffirming the office protections Congress granted to Fed governors. This means that the president cannot easily replace the Fed's governors on controversial grounds, thus limiting the space for pressure on the Fed through replacement of governors and providing an institutional guarantee for Walsh to lead the Fed more independently. Analysts pointed out that if the president can easily fire Fed governors and appoint officials with consistent positions to replace them, the independence of the Federal Reserve will be severely weakened and Walsh will have difficulty managing this institution. Investment manager Mark Spindell said allowing the president to replace governors for far-fetched reasons and fill the void with "loyal people" would undermine Washi's ability to focus on achieving the Fed's policy goals. However, the report believes that this ruling has not completely eliminated the possibility of the president putting pressure on the Federal Reserve. The independence of the Federal Reserve in the future still depends on how Trump treats Walsh, who was personally appointed, and whether the Supreme Court's 5 - 4 ruling can be upheld in future cases.