Federal Reserve Chair Jerome Powell is set to attend Supreme Court oral arguments this week in a case examining whether President Donald Trump has the authority to remove a sitting Federal Reserve Governor, Lisa Cook.
Cook sued after Trump sought her removal, arguing that the law establishing the Federal Reserve allows governors to be dismissed only ‘for cause’.
Lower courts allowed her to continue serving while the case moved forward, and the Supreme Court ruled in October that she could remain in her post while it considers the legal challenge.
Trump’s attempt to remove Cook was carried out via social media. On 25 August, the president posted a letter on his Truth Social account addressed to Cook stating that she was ‘hereby removed’ from her role. No president has previously sought to dismiss a Federal Reserve governor since the central bank was established in 1913.
Cook argues that the method of her removal violated her constitutional right to due process, saying she was given no advance notice or meaningful opportunity to respond to the allegations against her. Lower courts agreed that the process used by Trump was likely unlawful, citing concerns over both the lack of procedural safeguards and whether the allegations met the legal standard for removal.
The case is being heard as the Federal Reserve faces increasing pressure from the White House. Earlier this month, the U.S. Department of Justice issued grand jury subpoenas to the Fed as part of a criminal investigation linked to a multi-year renovation of the central bank’s headquarters in Washington, estimated to cost $2.5 billion.
Powell publicly criticised the investigation in a rare video statement, saying the subpoenas followed the Fed’s refusal to cut interest rates in line with the administration’s demands. He said the threat of criminal charges risked undermining confidence in the institution and its independence.
U.S. Treasury Secretary Scott Bessent has criticised Powell’s plan to attend the hearing, saying it could politicise the central bank. Speaking to CNBC, Bessent said it would be a mistake for the Fed chair to appear in person at arguments involving the administration’s attempt to remove a governor.
Trump originally appointed Powell as Fed chair in 2018. Powell’s term as chair ends in May, though his term as a member of the Fed’s Board of Governors runs until early 2028.
Legal experts say the Cook case could also shape the future of the Fed chair. A Supreme Court ruling that broadens the president’s power to remove governors could weaken long-standing protections around the central bank’s leadership, potentially affecting future attempts to dismiss or sideline the Fed chair.
What is at stake?
Trump has repeatedly called for interest rates to be cut to around 1%, arguing lower borrowing costs would boost economic growth. The Federal Reserve has taken a more cautious approach, cutting rates three times late last year to about 3.6%, citing inflation risks and its dual mandate to maintain price stability and support employment.
The administration has accused Cook of mortgage fraud related to loan documents for properties purchased before she joined the Fed. Cook denies the allegations and has not been charged. A federal judge previously ruled that the accusations were unlikely to constitute sufficient ‘cause’ for removal under the Federal Reserve Act.
All living former Federal Reserve chairs have issued a joint statement condemning the investigation into Powell, warning that attacks on central bank independence have historically been linked to economic instability and higher costs of living.
As the Supreme Court considers the limits of presidential power over the Federal Reserve, Powell’s appearance at the hearing highlights how a dispute over interest rates and governance has developed into a broader test of institutional independence at the heart of the U.S. financial system.
Belgium has issued 24-hour visas to a Taliban delegation attending European Union migration talks in Brussels, as EU member states explore ways to ret...
Peter Murrell, the former chief executive of Scotland's governing Scottish National Party (SNP), has been jailed for five years and three months after...
Germany is preparing for one of the most significant reforms of its pension system in decades, as Chancellor Friedrich Merz backs proposals aimed at s...
The Democratic Republic of Congo has recorded more than 1,000 confirmed Ebola cases for the first time in the current outbreak, with infections rising...
For Pakistan, helping create space for dialogue between the U.S. and Iran was never solely about diplomacy. It was about avoiding the economic and sec...
Belgium has issued 24-hour visas to a Taliban delegation attending European Union migration talks in Brussels, as EU member states explore ways to return some Afghans convicted of serious crimes or considered security threats.
Peter Murrell, the former chief executive of Scotland's governing Scottish National Party (SNP), has been jailed for five years and three months after admitting to embezzling more than £400,000 from the party over a 13-year period
Germany is preparing for one of the most significant reforms of its pension system in decades, as Chancellor Friedrich Merz backs proposals aimed at safeguarding retirement incomes in the face of rapid demographic change.
Iran's ambassador to the United Nations in Geneva said talks between the United States and Iran had made "good progress", with both sides set to establish working groups in the coming days to discuss sanctions relief and issues related to Iran's nuclear programme.
At least thirteen people have died and sixty-six have been injured following an explosion at Qatar's main liquefied natural gas (LNG) processing hub at Ras Laffan, authorities said on Sunday.
Cape Verde’s remarkable FIFA World Cup debut continued on Sunday (21 June) as the tournament newcomers held Uruguay to a 2-2 draw. Goalkeeper Vozinha was once again at the centre of the story, this time with his mother watching from the stands.
Tehran has agreed to let the International Atomic Energy Agency (IAEA) recommence inspections of its nuclear programme, U.S. Vice President JD Vance has said. The U.S. and Iran have settled on a 60-day roadmap aimed at reaching a final deal, according to mediators Qatar and Pakistan.
Armenia and Azerbaijan have agreed on a landmark internet deal that will allow traffic to pass through Azerbaijani networks.It's the latest deal to highlight the ongoing peace process between the two countries.
Three students have been killed and at least seven injured after two of their peers opened fire in a high school in the Philippines, police said. A spokesperson for the police said the two suspects, aged 14 and 15, had been arrested and a police pistol confiscated. Bullying is a possible motive.
Belgium has issued 24-hour visas to a Taliban delegation attending European Union migration talks in Brussels, as EU member states explore ways to return some Afghans convicted of serious crimes or considered security threats.
Peter Murrell, the former chief executive of Scotland's governing Scottish National Party (SNP), has been jailed for five years and three months after admitting to embezzling more than £400,000 from the party over a 13-year period
Germany is preparing for one of the most significant reforms of its pension system in decades, as Chancellor Friedrich Merz backs proposals aimed at safeguarding retirement incomes in the face of rapid demographic change.
The Democratic Republic of Congo has recorded more than 1,000 confirmed Ebola cases for the first time in the current outbreak, with infections rising to 1,048, including 267 deaths, authorities said.
South Korea has announced it will accept North Korean prisoners of war captured by Ukrainian forces while fighting for Russia if they wish to relocate to the South, citing international law and opposition to forced repatriation.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment