The Supreme Court will hear arguments in January regarding President Trump’s effort to remove Federal Reserve Governor Lisa Cook. Until then, Cook will remain in her position.
This case is seen as important because it could change how much control the President has over the Federal Reserve, which plays a big role in the nation’s economy.
Lawyers for President Trump have said that the President should have the power to choose who sets interest rates for Americans. They suggest it’s reasonable for a president to question whether someone should be in charge of setting interest rates if that person has a questionable history of personal finances.
The attempt to remove Cook is unusual because it’s the first time a president has tried to fire a sitting governor of the Fed. The Fed is meant to be independent, protecting it from political pressure.
A lower court had earlier blocked Trump from firing Cook, saying that there was not enough cause to remove her. The court said that Cook could not be removed for actions that occurred before she was appointed to the Fed.
Cook’s lawyers argue that Trump wants to replace her with someone who agrees with him, thus gaining more control over the Fed board.
The Supreme Court has previously sided with President Trump in cases involving the firing of board members. How the court rules could significantly impact the balance of power between the President and the Federal Reserve.
