Supreme Court case on Trump bid to fire Fed Governor Lisa Cook set for oral arguments

Core Points - The Supreme Court is set to hear a case regarding President Trump's authority to fire Federal Reserve Governor Lisa Cook over uncharged allegations of mortgage fraud [1][2] - The outcome of this case could impact the Federal Reserve's independence in setting monetary policy, particularly regarding the ability of a president to remove governors who do not align with their interests [2] - Fed Chairman Jerome Powell is under criminal investigation related to a multi-billion-dollar renovation of the Fed's headquarters, which may be linked to his decision to maintain interest rates that displeased Trump [3][4] Group 1 - Cook was one of the governors who supported Powell in keeping interest rates steady, which led to speculation that her potential firing was due to her refusal to cut rates as Trump desired [4] - If both Cook and Powell were removed, Trump could appoint a majority of the Fed's board, potentially increasing his influence over interest rate decisions [5] - Trump cited allegations from Federal Housing Finance Director Bill Pulte regarding Cook's mortgage applications as the reason for her firing, rather than her stance on interest rates [6] Group 2 - The Federal Reserve Act of 1913 allows only the president to terminate a Fed board member, and such termination must be "for cause," which has historically been interpreted as malfeasance or dereliction of duty [7] - A federal District Court judge ruled that Cook's removal attempt violated the "for cause" provision of the Federal Reserve Act, as the allegations against her pertained to actions taken before her appointment [8] - The Department of Justice's appeal against this ruling was unsuccessful, leading them to request the Supreme Court to take the case, asserting that the president has the discretion to determine "cause" for termination [9]