"It's a much more public show of support than the Fed chair has previously shown Cook. 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 - appointed to the position by Trump in 2018 - appears to be casting off last year's more subdued reponse to Trump's repeated attacks on the central bank in favor of a more public confrontation."
"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."
Jerome Powell will attend the Supreme Court oral argument in the case over President Donald Trump's attempt to fire Fed governor Lisa Cook. Trump announced the contemplated removal in late August, an unprecedented effort to oust a member of the Fed's seven-member governing board. Powell's attendance is a more public show of support after the administration issued subpoenas to the Fed and threatened a criminal indictment; Powell condemned the subpoenas as "pretexts" to force steep rate cuts. Powell oversaw three rate cuts last year lowering the Fed's key rate to about 3.6%. Cook denies mortgage fraud allegations; no charges were filed, and the Supreme Court allowed her to remain on the board while it considers her case. If removed, a replacement could give Trump appointees a majority and greater influence over Fed policy.
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