Supreme Court to weigh whether Trump can remove Fed governor Lisa Cook

The Supreme Court will hear arguments on Wednesday on whether President Trump can remove Federal Reserve governor Lisa Cook, a case that tests the long‑standing independence of the central bank. Justices have in other cases allowed Mr. Trump to oust leaders of independent agencies, but they have signaled the Fed may be uniquely insulated because of its structure and history.

The administration has escalated attacks on the Fed as it seeks to remake the board and lower interest rates; the Justice Department recently opened a criminal investigation into Fed Chair Jerome H. Powell, who pushed back by saying the Fed sets borrowing costs "based on our best assessment of what will serve the public, rather than following the preferences of the president." The investigation prompted a backlash and has complicated the president’s plans to name Mr.

Powell’s replacement, legal experts said. Mr. Trump announced in late August that he would fire Ms. Cook, alleging mortgage fraud involving loan documents she signed before joining the Fed in 2022; she has not been charged or convicted and disputes the allegations.

Key Topics

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