A major development in Trump's Fed feud is set to happen next week in the Supreme Court

Core Viewpoint - The Supreme Court will hear arguments regarding President Trump's attempt to fire Federal Reserve Governor Lisa Cook, which could impact the political independence of the Federal Reserve and set a precedent for the potential removal of Fed Chair Jerome Powell [1][2]. Group 1: Legal Proceedings and Implications - The Justice Department is investigating Cook for alleged mortgage fraud related to properties purchased under federally subsidized housing programs, which has led to Trump's efforts to remove her being blocked by courts [2]. - A ruling against Cook could increase the likelihood of Powell's removal, as noted by Bank of America economist Aditya Bhave, emphasizing the significance of the Cook case for the Federal Reserve's policy direction [3]. - Powell has been served with subpoenas regarding a multimillion-dollar renovation project at the Fed's headquarters, with the investigation focusing on whether he misled Congress during his testimony [3]. Group 2: Political Dynamics - Trump has been a vocal critic of Powell and has considered firing him, although Powell maintains that he cannot be removed unless cause is established [4]. - While Powell's term as chair ends in May, his term on the Board of Governors extends to 2028, allowing him to remain in a position that could obstruct Trump's attempts to influence Fed policy [5]. - Powell's resistance to Trump's personal and aggressive criticisms is notable, as this marks the first instance of the Justice Department pursuing a sitting Fed chair [7].