US President Donald Trump faced signs of resistance at the Supreme Court on Wednesday over his decision to remove a Federal Reserve governor, a move that has raised serious questions about central bank independence.
Justices from across the ideological spectrum questioned whether the court should rush a ruling on such a far-reaching issue. Several raised concerns about the legal process, the potential economic impact, and the long-standing principle that the Federal Reserve operates independently of political influence.
In August, Trump announced the dismissal of Federal Reserve Governor Lisa Cook, accusing her of mortgage fraud, an allegation she has denied. Cook has argued that she was not given proper opportunity to respond to the claims, with supporters saying the accusations were used as a pretext to give the president greater control over the central bank.
Federal law allows a president to remove a Fed governor only for cause, a safeguard designed to protect the institution from political pressure. The White House maintains that this standard was met, alleging Cook filed mortgage documents listing two primary residences at the same time, a practice that can lead to lower interest rates. The Trump administration has asked the Supreme Court to lift lower court rulings that temporarily blocked Cook’s removal while the case is reviewed.
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