Federal Reserve Chair Jerome Powell to Attend Supreme Court Hearing on Fed Governor’s Case
Federal Reserve Chair Jerome Powell is set to make an appearance at the Supreme Court on Wednesday for oral arguments in a case involving the attempted dismissal of Federal Reserve Governor Lisa Cook. This marks an unusual step by Powell, reflecting a significant show of support from the central bank’s leader.
The case under review by the high court revolves around whether former President Donald Trump has the authority to remove Cook, following his statement in late August expressing such an intention. This move is an unprecedented attempt to oust one of the seven members of the Federal Reserve’s governing board. A source familiar with the situation, speaking anonymously, confirmed Powell’s plan to attend the court session.
This forthcoming attendance signifies a more public stance by Powell compared to his previous support for Cook. It also coincides with Powell’s recent announcement that the Trump administration has issued subpoenas to the Federal Reserve, raising the possibility of an unprecedented criminal indictment against the Fed Chair. Powell, who was appointed by Trump in 2018, seems to be transitioning from last year’s more muted response to Trump’s criticisms of the central bank to a more open confrontation.
In a video statement released on January 11, Powell criticized the subpoenas as “pretexts” for Trump’s efforts to pressure him into significantly reducing the Fed’s key interest rate. Under Powell’s leadership, the Fed implemented three rate cuts late last year, bringing the rate down to approximately 3.6%. Trump, however, has advocated for a rate as low as 1%, a position not widely supported by economists.
The Trump administration has also accused Cook of mortgage fraud, an allegation she has denied. No charges have been filed against her. Cook has filed a lawsuit to retain her position, and on October 1, the Supreme Court issued a brief order allowing her to remain on the board while the case is under consideration.
If Trump succeeds in removing Cook, he would have the opportunity to appoint another individual to her position, potentially giving his appointees a majority on the Fed’s board. This could lead to increased influence over the central bank’s decisions on interest rates and bank regulation.
