Supreme Court keeps Fed governor in place

• The US Supreme Court temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook in a 5-4 decision.
• The ruling preserves the current Federal Reserve leadership as Bitcoin remained below US$60,000 amid expectations of higher interest rates.
• Analysts said continued high interest rates could remain a headwind for Bitcoin if the Federal Reserve maintains its current policy stance.

The US Supreme Court ruled 5-4 that President Donald Trump cannot, for now, remove Federal Reserve Governor Lisa Cook, preserving the central bank's current leadership as Bitcoin (CRYPTO:BTC) traded below US$60,000.

The decision comes after the Federal Open Market Committee removed projected interest rate cuts for 2026 from its latest outlook and indicated that further rate increases remain possible if inflation persists.

“This was never about mortgage documents … It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure,” said Federal Reserve Governor Lisa Cook.

The dispute stems from allegations by Federal Housing Finance Agency Director Bill Pulte that Cook made conflicting declarations on mortgage documents in 2021, allegations that Cook's legal representatives have rejected, while the Supreme Court's decision leaves the matter to continue through lower courts.

The ruling means the current composition of the Federal Reserve Board remains unchanged while the legal case proceeds, and as the decision relates to a government institution there was no share price reaction.

Higher interest rates have weighed on cryptocurrency markets because assets such as Bitcoin do not generate yield, while continued exchange-traded fund outflows and expectations of tighter monetary policy have added pressure to digital asset prices in recent weeks.

The decision does not determine the final outcome of the legal dispute, but it delays any immediate changes to Federal Reserve leadership while the courts consider the underlying case, leaving monetary policy expectations largely unchanged in the near term.

At the time of reporting, Bitcoin price was $59,402.59.