Supreme Court Hears Arguments on Fed Governor's Firing

The U. S. Supreme Court is currently deciding if President Donald Trump can fire Federal Reserve Governor Lisa Cook. The debate centers around what "cause" means for dismissal. Cook and Fed Chair Jerome Powell attended the hearing, showing support for her. Cook's firing stems from allegations of mortgage fraud, which she denies. The court is considering if actions before her appointment should be considered. They also discussed if negligence qualifies as "cause" for removal. The Federal Reserve Act, established in 1913, protects governors from political interference. However, it does not clearly define "cause" or the removal process. This case could impact the Fed's independence.During arguments, justices explored hypotheticals, like if a Fed official's past statements could lead to removal. Cook's lawyer argued that such actions would likely result in resignation. The Trump administration claims Cook's actions were "deceit or gross negligence, " while her lawyer argues it was a mistake. Outside the court, Democrats rallied for Fed independence. They claim Trump wants a central bank that answers only to him. The outcome of this case could shape the future of the Federal Reserve's autonomy.