Federal Reserve Chair Jerome Powell will sit in the Supreme Court chamber Wednesday as justices hear arguments on whether President Donald Trump can oust Fed governor Lisa Cook, according to a person familiar with Powell’s plans.
At a Glance
- Powell will attend Cook’s Supreme Court hearing
- The Fed faces grand-jury subpoenas over a $2.5 billion renovation
- Trump tried to fire Cook in August, citing mortgage-fraud claims
- Why it matters: The case tests the Fed’s shield from political pressure
Powell’s rare courtroom appearance signals a deepening fight over the central bank’s independence. The Fed chair revealed earlier this month that the Justice Department served the bank with subpoenas and threatened a criminal indictment tied to the headquarters renovation. The move followed Trump’s repeated public demands for lower interest rates and his attacks on Powell as “too late” and “a major loser.”
High-Stakes Hearing
The Supreme Court in October let Cook stay on the job while it prepared for January arguments. Trump fired Cook in August after William Pulte, head of the Federal Housing Finance Agency, accused her of mortgage fraud. The Federal Reserve Act allows removal only for cause; Cook denies wrongdoing and bank documents previously obtained by News Of Philadelphia undercut the allegations, according to earlier reporting.
Cook’s term runs until January 2038. Her attorney, Abbe Lowell, called Trump’s action baseless.
“His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis,” Lowell said at the time.
Subpoenas and Indictment Threat
The Justice Department subpoenas landed Friday, Powell disclosed, focusing on the $2.5 billion Fed facilities upgrade. Powell tied the threatened indictment to his June Senate testimony about the project, calling the charges “pretexts.”
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said.
The Federal Reserve declined to comment on Powell’s planned attendance. Robert K. Lawson reported the development, and News Of Philadelphia has reached out to the White House for comment.
Key Takeaways
- Powell’s courtroom presence underscores the Fed’s push to remain free from political interference
- The subpoenas raise the stakes in the standoff between the central bank and the Trump administration
- A Supreme Court ruling could clarify how much protection Fed governors have from presidential removal
