Supreme Court seems inclined to keep Lisa Cook on Fed board despite Trump attempt to fire her

"WASHINGTON -- The Supreme Court on Wednesday seemed inclined to keep Federal Reserve governor Lisa Cook in her job, casting doubt on President Donald Trump's bid to wrest control of the nation's central bank. 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 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 showed reluctance to allow President Trump's attempt to remove Federal Reserve governor Lisa Cook, who denies mortgage-fraud allegations. No president has ever fired a sitting Fed governor in the institution's 112-year history, reflecting structural independence from day-to-day politics. Justice Brett Kavanaugh warned that allowing the firing would weaken or shatter Federal Reserve independence, and multiple other justices sounded skeptical of removal. Both Cook and Fed Chair Jerome Powell attended arguments. Critics say the removal effort aims to give the president greater control over interest-rate policy, potentially affecting markets and the broader economy.

Read at ABC7 Los Angeles