The Supreme Court on Wednesday seemed inclined to keep Federal Reserve governor Lisa Cook in her job, casting doubt on President Donald Trump’s bid to wrest control of the nation’s central bank.
The justices heard arguments over Trump’s effort to fire Cook based on allegations she committed mortgage fraud, which she denies. No president has fired a sitting governor in the 112-year history of the Fed, which was structured to be independent of day-to-day politics. The case presented the court with one of the more extraordinary efforts by Trump to expand presidential power. Though the court has frequently sided with him on emergency petitions, Cook’s case could prove to be an exception.
Allowing Cook’s firing to go forward “would weaken, if not shatter, the independence of the Federal Reserve,” said Justice Brett Kavanaugh, one of three Trump appointees on the nation’s highest court.
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