Supreme Court justices express concern about threats to Federal Reserve independence

At a Supreme Court hearing on Jan. 21, 2026, justices signaled unease about President Trump’s effort to remove Federal Reserve governor Lisa D. Cook and the broader implications for the Fed’s independence. During roughly two hours of oral argument, several justices raised economic worries as the administration defended the president’s move to fire Ms.

Cook “for cause.” Friends-of-the-court briefs from economists and former officials — including every living former Fed chair and six former Treasury secretaries — warned that allowing her removal could “erode public confidence in the Fed’s independence and threaten the long-term stability of our economy,” and might cause a recession, according to the briefs.

Justices Amy Coney Barrett, Sonia Sotomayor and Brett Kavanaugh all pressed the government on the potential economic consequences, while the Trump administration pointed to markets’ reaction after Ms. Cook’s removal and argued that leaving her in office would harm public perception.

The hearing played out against a backdrop of public pressure from Mr. Trump — who criticized the Fed at the World Economic Forum in Davos — and a Justice Department grand jury subpoena to Fed Chair Jerome Powell, which he said was intended to coerce lower interest rates. The Supreme Court’s forthcoming decision will determine whether Ms.

Key Topics

Politics, Lisa Cook, Federal Reserve, Donald Trump, Jerome Powell, Supreme Court