Davis Polk partner and Financial Institutions practice co-head Margaret Tahyar was quoted in American Banker discussing the questions remaining about the future of the Federal Reserve following the Supreme Court decision determining that Fed Governor Lisa Cook could remain on the board. 

The article noted that the decision is complicated by Trump v. Slaughter, a concurrent decision brought by two terminated Federal Trade Commission members, in which the court allowed the president to fire any agency head at any time for any reason. 

Discussing the disparate outcomes, Margaret said, “At the heart of Trump v. Slaughter was a constitutional question about executive authority, whereas Trump v. Cook was a procedural question about whether lower courts erred in granting – and upholding – the injunction that allows Cook to continue working at the Fed while her case is resolved.”

She noted that the majority contingent on the Fed seized the opportunity to avoid specifying which of the Fed’s functions were worthy of special consideration and which were not. 

“The Supreme Court has weighed on the independence of the Fed’s monetary policy, but has deliberately not decided on regulation and supervision,” Margaret said. “It deliberately didn’t weigh in on those because of the procedural posture of the case.”

The article pointed out that the opinion stated that Cook was not given proper notice about her termination and was not provided a forum to address the accusations against her. Margaret said, “It would likely take years for that process to work its way through the court system.”

“Key questions for Fed still unanswered after Cook decision,” American Banker (June 30, 2026) (subscription required) 

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