Washington, D.C. — The U.S. dollar reversed its recent slide and posted modest gains after the Supreme Court decided that Federal Reserve Governor Lisa Cook can remain in her post for the time being, postponing any action on her dismissal until oral arguments in January.
With the court deferring its decision, concerns about the Fed’s independence momentarily receded. The ruling gives markets some breathing room amid high tension over monetary policy and institutional checks.
Meanwhile, the ongoing U.S. government shutdown has stalled the release of key economic data, compelling investors to rely on limited indicators such as declines in private payrolls and weak new orders in manufacturing. Most analysts now expect the Fed to cut interest rates by 25 basis points at its October meeting.
As markets recalibrate, gold prices eased slightly, and the dollar saw gains against the yen and yuan. The decision is viewed as a temporary reprieve in a broader legal and political battle over presidential powers and central bank autonomy.
