Powell To Attend Supreme Court Arguments Over Trump’s Firing of Fed Governor Lisa Cook

Chairman Jerome Powell of the Federal Reserve will attend oral arguments at the Supreme Court on Wednesday about President Trump’s efforts to fire Fed governor Lisa Cook.The case is an test of the independence of the central bank as Mr. Trump seeks to influence its rate decisions. Mr. Powell’s appearance in the courtroom would be a rare show of support by a Fed governor at odds with the executive branch.Mr. Trump and his administration have accused Ms. Cook of committing mortgage fraud, citing documents related to two properties Ms. Cook allegedly claimed as primary residences. Ms. Cook has denied the claim and has not been charged with any crime.Two lower courts blocked the president from having her immediately removed as her lawsuit over her dismissal works its way through the courts and Chief Justice John Roberts declined to overturn the stays ahead of the high court hearing the case. Ms. Cook said in a filing that her removal could risk “shock waves in the financial markets that could not easily be undone.”Citing Mr. Trump’s vast powers as president, Justice Department lawyers argued in a filing that judges had no right to review his firing of Ms. Cook at all. In their appeal to the appellate court, government lawyers argued that federal statute is vague enough to allow Mr. Trump to remove Ms. Cook as long as he identifies some reason other than a policy disagreement.For Mr. Powell’s part, he is facing a Justice Department criminal probe into claims of perjury regarding testimony to Congress. The investigation centers on a renovation project at the central bank’s Washington headquarters and whether Mr. Powell misled Congress about the costs during testimony in front of the Senate Banking Committee.A letter has surfaced since Mr. Trump’s Justice Department first raised the issue in which Mr. Powell gave a detailed response to questions senators raised about the project during the hearing.Mr. Trump has repeatedly pressured Mr. Powell to cut interest rates and has mused about firing him. Mr. Powell’s term as chairman ends in May but his term as a governor does not expire until 2028. It is unclear if he will stay on in that role.Replacing Mr. Powell and Ms. Cook would give the president a chance to appoint governors more amenable to his pressure on interest rates.

Powell To Attend Supreme Court Arguments Over Trump’s Firing of Fed Governor Lisa Cook

Powell To Attend Supreme Court Arguments Over Trump’s Firing of Fed Governor Lisa Cook

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