Supreme Court appears wary of allowing Trump to fire Fed’s Cook in closely watched case : NPR

The Supreme Court expressed doubt Wednesday regarding President Trump’s move to dismiss a Federal Reserve Board of Governors member, a decision that many believe could jeopardize the autonomy of the leading central bank.

The case involving Lisa Cook, a Fed governor, revolves around whether a president’s assertion of just cause to remove a Fed board member, as argued by the Trump administration, is immune from judicial review. Cook’s legal team contends that firing a Fed official without judicial oversight would undermine the Fed’s independence.

The administration alleges that Cook misrepresented information to secure loans for two properties by falsely identifying one as a vacation home. Cook denies the accusations, highlighting that similar mortgage applications by several high-ranking officials, including Trump’s Cabinet members and even the accuser’s relatives, have not faced scrutiny.

The outcome of the Supreme Court’s decision remains uncertain. While the conservative majority previously permitted Trump to replace agency leaders in specific cases, the court differentiated the Fed as a unique entity with historical significance akin to the First and Second Banks of the United States.

If Trump’s position prevails, he is likely to replace not only Cook but other Fed governors as well. With Fed Chair Jerome Powell’s term expiring soon, Trump’s ability to appoint a majority of board members may impact the central bank’s operations.

This story is unfolding and will be updated accordingly.