Supreme Court Faces Landmark Decision on Fed Independence Amid Cook-Trump Clash

In a contentious legal battle, Federal Reserve Governor Lisa Cook has urged the U.S. Supreme Court to dismiss President Donald Trump's unprecedented attempt to remove her from the central bank's board. Lawyers representing Cook have opposed the administration's emergency request to overturn a federal judge's block on Cook's ousting, asserting the allegations made by Trump lack substantial grounds.

The controversy stems from Trump's allegation that Cook committed mortgage fraud—a claim she denies—before her appointment by former President Joe Biden. While Trump demands her removal, a U.S. District Judge questioned the sufficiency of these allegations under the 1913 Federal Reserve Act. The case highlights not only procedural ambiguities in removing Fed governors but also raises broader concerns about the institution's independence amid political pressures.

Amidst the ongoing legal proceedings, 18 former top Fed officials have stood in support of Cook, arguing that permitting her removal threatens the central bank's autonomy. The legal ramifications of this case could redefine the extent of presidential power over the Fed, emphasizing the critical need for its operational integrity to remain unaffected by political influence.

(With inputs from agencies.)