The Supreme Court is about to weigh in on the Fed's independence in a case that goes beyond Jerome Powell

"The Supreme Court on Wednesday is scheduled to hear arguments over President Donald Trump's attempts to fire a sitting Federal Reserve board member. Lisa Cook, whom Trump tried to remove in August, has asked the high court to ensure she can keep her job. She's argued that the "cause" Trump cited, which involves allegations of mortgage irregularities, is a pretext. The efforts to fire her are based on politics, not economic data or job performance, her lawyers say."

"The case has broad implications for the central bank's independence at a critical moment. Last week, Fed Chair Jerome Powell accused Trump's Justice Department of an unprecedented attempt to pressure him with what he described as a sham criminal probe. As Powell continues to battle what he has described as improper political interference, the Cook case tests a separate but related legal question: Can the president of the United States unseat a sitting Fed governor for any reason?"

Supreme Court arguments will determine whether the president may remove a sitting Federal Reserve governor after President Trump attempted to dismiss Lisa Cook in August. Cook contends that the cited "cause" of mortgage irregularities is a pretext and that the removal effort is politically motivated rather than based on job performance or economic data. The case raises questions about the Federal Reserve's independence as Fed Chair Jerome Powell accuses the Justice Department of an unprecedented attempt to pressure him with a sham criminal probe. A constitutional law professor predicted the investigation could make justices more inclined to curb presidential pressure on the Fed.

Read at Business Insider