"The justices heard arguments over Trump's effort to fire Cook based on allegations she committed mortgage fraud, which she denies. No president has fired a sitting governor in the 112-year history of the Fed, which was structured to be independent of day-to-day politics. The case presented the court with one of the more extraordinary efforts by Trump to expand presidential power. Though the court has frequently sided with him on emergency petitions, Cook's case could prove to be an exception."
"Allowing Cook's firing to go forward "would weaken, if not shatter, the independence of the Federal Reserve," said Justice Brett Kavanaugh, one of three Trump appointees on the nation's highest court."
"The true motivation for trying to fire Cook, Trump's critics say, is the Republican president's desire to exert control over U.S. interest rate policy. If Trump succeeds in removing Cook, the first Black woman Federal Reserve governor, he could replace her with his own appointee and gain a majority on the Fed's board. The case is being closely watched by Wall Street investors and could have broad impacts on the financial markets and U.S. economy."
The Supreme Court heard arguments on President Trump's attempt to remove Federal Reserve governor Cook over alleged mortgage fraud, which she denies. No president has removed a sitting Fed governor in the institution's 112-year history, and the Fed was structured to remain independent of daily politics. Justice Kavanaugh warned that allowing the firing would weaken or shatter Fed independence, and at least five other justices expressed skepticism. Cook and Fed Chair Jerome Powell attended the courtroom proceedings, and Cook pledged to uphold political independence. Critics say the move aims to shift interest-rate policy by enabling replacement with a Trump appointee, with markets closely watching.
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