Federal Reserve Chair Jerome Powell will attend the Supreme Court’s oral arguments on Wednesday in a case involving the attempted firing of Fed governor Lisa Cook, an unusual show of support by the central bank chair. Video above: DOJ probe of Fed Chair Powell prompts concern about central bank’s independenceThe high court is considering whether President Donald Trump can fire Cook, an unprecedented attempt by the White House to remove an official appointed by former President Joe Biden. Powell plans to attend the Wednesday session, according to a person familiar with the matter. It’s a much more public show of support than the Fed chair has previously shown Cook, who Trump first sought to fire in late August. But it follows Powell’s announcement last week that the Trump administration has sent subpoenas to the Fed, threatening an unprecedented criminal indictment of the Fed Chair. Powell issued a video statement Jan. 11 condemning the subpoenas as “pretexts” for Trump’s efforts to force him to sharply cut the Fed’s key interest rate.The Trump administration has accused Cook of mortgage fraud, an allegation that Cook has denied. No charges have been made against Cook. She sued to keep her job, and the Supreme Court Oct. 1 issued a brief order allowing her to stay on the board while they consider her case.If Trump succeeds in removing Cook, he could appoint another person to fill her slot, which would give his appointees a majority on the Fed’s board and greater influence over the central bank’s decisions on interest rates and bank regulation.
Federal Reserve Chair Jerome Powell will attend the Supreme Court’s oral arguments on Wednesday in a case involving the attempted firing of Fed governor Lisa Cook, an unusual show of support by the central bank chair.
Video above: DOJ probe of Fed Chair Powell prompts concern about central bank’s independence
The high court is considering whether President Donald Trump can fire Cook, an unprecedented attempt by the White House to remove an official appointed by former President Joe Biden. Powell plans to attend the Wednesday session, according to a person familiar with the matter.
It’s a much more public show of support than the Fed chair has previously shown Cook, who Trump first sought to fire in late August. But it follows Powell’s announcement last week that the Trump administration has sent subpoenas to the Fed, threatening an unprecedented criminal indictment of the Fed Chair.
Powell issued a video statement Jan. 11 condemning the subpoenas as “pretexts” for Trump’s efforts to force him to sharply cut the Fed’s key interest rate.
The Trump administration has accused Cook of mortgage fraud, an allegation that Cook has denied. No charges have been made against Cook. She sued to keep her job, and the Supreme Court Oct. 1 issued a brief order allowing her to stay on the board while they consider her case.
If Trump succeeds in removing Cook, he could appoint another person to fill her slot, which would give his appointees a majority on the Fed’s board and greater influence over the central bank’s decisions on interest rates and bank regulation.
