Bond market anticipated Supreme Court ruling on Fed's Lisa Cook: Bullard

Summary

The Supreme Court ruled that President Trump cannot fire Fed Governor Lisa Cook, a decision the bond market expected. Former St. Louis Fed president Jim Bullard says the ruling is important for Fed independence but won't change Jay Powell's plans or the next FOMC meeting. He notes the committee has turned hawkish with core PCE above 3% and rate cuts removed for now.

• Supreme Court ruling keeps Lisa Cook on the Fed, upholding Fed independence.
• Bond markets anticipated the decision and showed little reaction.
• Jim Bullard says the ruling will not affect Jay Powell's decision to stay until term end.
• The FOMC has shifted hawkish, with core PCE inflation above 3% seen as a red line.
• Rate cuts are off the table, and the committee is nervous about inflation.
• Bullard expects no immediate impact on the upcoming Fed meeting.
• The legal process on the firing question will continue in lower courts.