Overview
- The justices signaled skepticism toward the administration’s claim that the president can remove a sitting Fed governor, warning of risks to monetary-policy independence.
- Lisa Cook remains on the Board of Governors while the Supreme Court weighs the case, with a ruling expected by summer.
- President Trump sought to fire Cook over mortgage-related allegations, which she denies, but lower courts blocked the removal.
- Powell recently disclosed a Justice Department criminal probe concerning the Fed’s headquarters renovations, intensifying concerns about political pressure on the central bank.
- Treasury Secretary Scott Bessent called Powell’s decision to attend oral arguments a mistake that politicized the dispute.