Jerome H. Powell, the chair of the Federal Reserve, will attend the oral arguments at the Supreme Court on Wednesday over whether President Trump has the authority to remove Lisa D. Cook, a governor at the central bank, according to a person familiar with Mr. Powell’s plans.
The stakes of the case are enormous for the independence of the Fed. If the justices rule against Ms. Cook, Mr. Trump and future presidents will have significantly more leeway to oust officials at the Fed at will. Ms. Cook, who will also attend the arguments on Wednesday, has been accused by the administration of mortgage fraud, which officials cited as “cause” to fire her.
Ms. Cook, who has been a Fed governor since 2022, sued after Mr. Trump tried to oust her in August, arguing that the law that established the Fed allowed presidents to dismiss members only “for cause.”
Ms. Cook, who has not been charged with wrongdoing, denies the allegations of mortgage fraud, which relate to loan documents she signed before joining the Fed. The Supreme Court ruled in October that she could stay in her post while her lawsuit played out.
Mr. Powell will attend the arguments on the heels of his own confrontation with the administration, which he directly called out in an extraordinary video message last week after the Justice Department sent the central bank grand jury subpoenas seeking information about a $2.5 billion renovation project of the Fed’s headquarters in Washington.
“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,” Mr. Powell said.
Ann E. Marimow contributed reporting from Washington.
Colby Smith covers the Federal Reserve and the U.S. economy for The Times.
The post Powell Will Attend Supreme Court Arguments on Trump’s Effort to Fire Fed Official appeared first on New York Times.
