SCOTUS Considers Trump’s Authority Over Federal Reserve as Bostic Steps Down During Leadership Upheaval

Federal Reserve President Raphael Bostic has announced he will retire on February 28, 2026, signaling a major leadership change at the central bank as it continues to face political scrutiny and legal disputes

. Bostic, who made history as the first Black and openly gay president of a regional Federal Reserve Bank, will leave his position overseeing the Atlanta Fed’s Sixth District, which covers Alabama, Florida, Georgia, and sections of four additional Southern states . His planned exit comes at a time of heightened challenges for the Fed, including a Supreme Court case reviewing former President Donald Trump’s effort to dismiss Governor Lisa Cook, a move that could impact the central bank’s autonomy .

Bostic’s decision to step down follows more than eight years in the role, during which he advocated for greater economic inclusion and participated in the Federal Open Market Committee (FOMC), where his votes

. The Atlanta Fed’s board will establish a search committee to identify a new president, and if no successor is chosen by the end of the year, Cheryl Venable, the current first vice president, will serve as interim leader . Bostic’s retirement is particularly notable because he is only 59, which is younger than the usual retirement age for regional Fed presidents.

The Fed’s independence is under renewed examination as Trump attempts to remove Cook, who was appointed by President Joe Biden. Trump accuses Cook of mortgage fraud before her 2022 appointment, an allegation she rejects.

Trump’s attempt to oust Cook, finding that the accusations did not satisfy the “for cause” requirement under the Federal Reserve Act. The Supreme Court is scheduled to hear the case on January 21 to decide if Trump can proceed with Cook’s removal while her lawsuit is ongoing . The outcome could reshape the limits of presidential power over the Fed, which Congress intended to shield from political influence .

Bostic’s departure is part of a broader wave of leadership transitions at the Fed, as all 12 regional presidents are up for reappointment in February. Federal Reserve Chair Jerome Powell commended Bostic for his “steady leadership” and his work on the FOMC, while Atlanta Fed board chair Gregory Haile emphasized Bostic’s efforts to ensure that “the economic realities of all Americans” are reflected in policy decisions

. The timing of Bostic’s retirement coincides with Trump’s wider initiative to alter the Fed’s leadership, including interim appointments such as Stephen Miran, a former member of Trump’s Council of Economic Advisers .

The Supreme Court’s ruling in Cook’s case is expected to have a lasting impact on the Fed’s independence. Legal experts suggest the decision could overturn a 1935 precedent that protects independent agencies from being dismantled by the president without clear justification

. For now, Cook continues in her position, with the Supreme Court’s verdict likely to set a standard for future disputes between the executive branch and the central bank.