U.S. Supreme Court "Trump Cannot Immediately Dismiss Federal Reserve Governor"...Hawkish Fed Maintains Independence

▲ Donald Trump, Federal Reserve/AI-generated image

As the U.S. Supreme Court blocked U.S. President Donald Trump's attempt to dismiss a Federal Reserve governor, the Bitcoin market is once again burdened with hawkish monetary policy.

According to cryptocurrency media BeInCrypto on June 30 (local time), the U.S. Supreme Court ruled 5-4 on June 29 that Trump cannot immediately dismiss Lisa Cook, a governor of the U.S. Federal Reserve. BeInCrypto analyzed that while this decision upheld the Fed's independence, it resulted in maintaining a hawkish Fed structure at an unfavorable time for Bitcoin (BTC).

Trump reportedly pushed for Cook's dismissal to appoint a more dovish individual to the Fed's board. However, with the Supreme Court's intervention, Trump's path to arbitrarily dismissing Fed governors and altering the monetary policy landscape has been blocked. BeInCrypto assessed that this ruling has reduced the short-term possibility of forming a Fed board favorable to interest rate cuts.

Market burden is already evident in the interest rate trajectory. BeInCrypto reported that at the June Federal Open Market Committee meeting, the outlook for interest rate cuts in 2026 disappeared, and the possibility of interest rate hikes was back on the table. High interest rates act as a burden on Bitcoin, a non-yielding asset, and Bitcoin ETF outflows continued in June.

Bitcoin dropped below $60,000 on Monday and is down more than 50% from its all-time high, BeInCrypto reported. Cook stated in a press release, “This matter was never about mortgage documents.” She added, “It was an attempt to remove me under fabricated pretexts for not succumbing to political pressure.”

The case surrounding Cook originated from mortgage fraud allegations raised by Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), in August 2025. Pulte claimed that Cook had listed two properties in Michigan and Georgia as her primary residences within weeks of each other in 2021. Cook's lawyers refuted these claims, stating they were baseless and relied on ambiguous phrasing in a single mortgage document.

This ruling demonstrates the limits of Trump's ability to arbitrarily dismiss Fed governors and push for interest rate cuts. BeInCrypto believes that a hawkish Fed stance is likely to be maintained until lower courts rule on the merits of the case. The confluence of weakened interest rate cut expectations, Bitcoin ETF outflows, and Bitcoin falling below $60,000 has further increased the monetary policy burden on the cryptocurrency market.

[Article Summary]

- The U.S. Supreme Court ruled 5-4 that Trump cannot immediately dismiss Federal Reserve Governor Lisa Cook.

- BeInCrypto analyzed that this decision lowered the possibility of a Fed composition favorable to interest rate cuts, burdening Bitcoin.

- Bitcoin fell below $60,000 on Monday, and Bitcoin ETF outflows in June and concerns about interest rate hikes also acted as market pressure factors.

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