President Donald Trump moved to dismiss Federal Reserve Governor Lisa Cook in August based on allegations of mortgage fraud
Today, the Supreme Court is set to hear oral arguments in the high-stakes legal battle involving President Donald Trump’s bid to fire Federal Reserve Governor Lisa Cook, and Fed Chair Jerome Powell is expected to attend it.
Powell’s rare show of support comes as the DOJ investigation over the $2.5 billion renovation of the Fed’s Washington headquarters. The hearing also follows repeated criticism from Trump over the Fed’s interest rate policies.
Trump moved to dismiss Cook in August, citing allegations of mortgage fraud. She has denied these claims and has not been charged.
While the Federal Reserve Act protects governors from removal without evidence of wrongdoing, Trump’s push to oust her has sparked a broader constitutional debate.
The outcome of the case would be historic as it could erode or uphold the central bank’s independence. Former Fed governors have warned that any hindrance to its autonomy could lead to high inflation and market instability.
Cook is the first Black woman to be on the Fed’s board of governors. Her removal could shift the majority of the board to Trump’s appointees.