Overview
- Justices from across the ideological spectrum questioned the administration’s bid for immediate removal, indicating Cook will likely remain while the lawsuit proceeds.
- Arguments focused on what qualifies as “for cause,” whether alleged misconduct before Cook joined the Fed can justify removal, and what notice or hearing is required.
- The Justice Department argued the president’s determination of cause should face little or no judicial review, drawing sharp pushback from several justices including Brett Kavanaugh.
- Lower courts kept Cook in her post, with a district judge finding a strong likelihood that Trump’s attempt violated the Federal Reserve Act’s removal protections and due process.
- Fed Chair Jerome Powell attended the hearing as he faces a DOJ inquiry into a headquarters renovation that he calls political, and former Fed leaders warned removal would damage central bank independence.