Supreme Court to Hear Case on President's Authority to Dismiss Fed Governor Lisa Cook
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The Supreme Court is set to hear arguments on President Trump's attempt to remove Federal Reserve Governor Lisa Cook, a case with significant implications for the Fed's independence.
The Supreme Court is scheduled to hear oral arguments on Wednesday regarding President Donald Trump's attempt to remove Federal Reserve Governor Lisa D. Cook from her position. Federal Reserve Chair Jerome H. Powell plans to attend the proceedings, underscoring the case's significance for the central bank's independence.
The administration has accused Ms. Cook of mortgage fraud, citing loan documents she signed before her 2022 appointment to the Fed. Ms. Cook denies these allegations and has not been charged with any wrongdoing. She contends that the Federal Reserve Act permits the dismissal of board members only "for cause," and that the accusations do not meet this standard.
In October, the Supreme Court allowed Ms. Cook to remain in her role while the legal proceedings continue. The outcome of this case could have far-reaching implications for the autonomy of the Federal Reserve and the extent of presidential authority over its officials.
Source
The New York TimesFact-checking
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