Supreme Court Keeps Lisa Cook on Federal Reserve Board Amid Political Pressures

The **U.S. Supreme Court** is the highest judicial authority in the United States, established by Article III of the U.S. Constitution and formally created under the Judiciary Act of 1789. It serves as the ultimate arbiter of constitutional and federal law, with the power to interpret the Constitution, review laws, and overturn those deemed unconstitutional, thus checking the legislative and executive branches of government[1][4][6]. The Court first convened in 1790 with six justices, including its first Chief Justice, John Jay. Over time, Congress adjusted the number of justices, settling at nine in 1869, comprising one Chief Justice and eight Associate Justices, all appointed by the President and confirmed by the Senate[1][3][6]. Justices hold lifetime appointments, ensuring judicial independence. The Court initially lacked prestige but gained significant authority under Chief Justice John Marshall (1801–1835), who established judicial review in *Marbury v. Madison* and solidified the Court as the definitive interpreter of the Constitution[10]. Key achievements of the Supreme Court include landmark rulings that shaped American federalism and civil rights, such as *McCulloch v. Maryland* (affirming federal power), *Gibbons v. Ogden* (regulating interstate commerce), and the establishment of judicial independence during the impeachment proceedings of Justice Samuel Chase. The Court also modernized its procedures by issuing unified majority opinions instead of individual ones[10]. Today, the Supreme Court sits in its dedicated building in Washington, D.C., completed in 1935, holding annual terms from October to late June or July. It exercises original jurisdiction in limited cases (e.g., disputes between states) and primarily appellate jurisdiction over federal and constitutional issues[4][6]. For readers interested in business and technology, the Court’s decisions profoundly impact regulatory frameworks, intellectual property law, and digital privacy rights, influencing the legal landscape in which modern enterprises operate. Its role in balancing governmental

## Overview and Mission The Federal Reserve, often called the "Fed," is the central bank of the United States, established by Congress in 1913 to provide the nation with a safer, more flexible, and stable monetary and financial system[1]. Its mission centers on a dual mandate from Congress: to promote maximum employment and maintain price stability, ensuring the dollar retains its value over time[1]. The Fed operates through a unique hybrid structure, combining a national Board of Governors in Washington, D.C., with 12 independent regional Reserve Banks, including institutions like the Cleveland Fed[1]. This decentralized setup allows the Fed to closely monitor economic conditions across diverse regions, industries, and communities, while maintaining independence from short-term political influences[1]. ## Key Functions The Fed’s responsibilities are broad and vital to the U.S. economy. It conducts monetary policy—primarily by influencing interest rates—to achieve its employment and inflation goals[2]. The Fed also supervises and regulates banks to ensure the safety and soundness of the financial system, works to minimize systemic risks, and fosters efficient payment and settlement systems[2]. Additionally, it promotes consumer protection and community development, addressing emerging issues through research, supervision, and enforcement of consumer laws[2]. ## History and Evolution The Federal Reserve is the third central bank in U.S. history, following two failed attempts in the 19th century[1]. Its creation was a response to the financial turbulence of the early 20th century, aiming to prevent crises and stabilize the economy. Over time, the Fed has evolved, adopting more transparent and inclusive policymaking processes. For example, it now conducts regular reviews of its monetary policy framework, engaging with academics, businesses, and the public to refine its strategies and communications[3][5]. ## Recent Developments and Achievements In 2025, the Fed completed its second major review of its monetary policy strategy, tools, and communications, reaffirming its commitment to transparenc

The **Board of Governors** primarily refers to two major governing bodies in international finance and U.S. monetary policy: the World Bank's Boards of Governors and the U.S. Federal Reserve Board of Governors. The **World Bank Boards of Governors** consist of one Governor and one Alternate Governor from each member country, typically held by a country’s finance minister or central bank governor. They serve five-year terms and collectively form the Bank’s highest decision-making authority. Their key responsibilities include admitting or suspending members, adjusting the Bank’s capital stock, approving income distribution, and making formal cooperation arrangements with other international organizations. Although the Board delegates most powers to Executive Directors, it retains critical oversight functions such as approving amendments to the Articles of Agreement and deciding on appeals. Governors from countries that are members of affiliated organizations like the International Finance Corporation (IFC) and International Development Association (IDA) also serve on those bodies’ Boards[1]. The **Federal Reserve Board of Governors** is the main governing body of the U.S. Federal Reserve System, headquartered in Washington, D.C. It consists of seven members appointed by the U.S. President and confirmed by the Senate for staggered 14-year terms to ensure independence from political cycles. The Board oversees the 12 regional Federal Reserve Banks and guides national monetary policy. It plays a central role in supervising and regulating banks, monitoring credit conditions, and setting interest rates through the Federal Open Market Committee (FOMC), which includes all Governors and selected Reserve Bank presidents. The Chair and Vice Chair serve four-year renewable terms. The Board operates independently from Congress and the Executive Branch to shield monetary policy from short-term political influence[2][3][5][6][7]. Notable aspects include the Board’s role in stabilizing the U.S. economy, its comprehensive regulatory oversight, and its commitment to transparency through public communication of monetary policy decisions. The Federal Reserve Board’s structure and long terms promote steady governance, while the World Bank’s Boards of Governor