Supreme Court to Hear Historic Case on Trump’s Attempt to Remove Fed Governor

The U.S. Supreme Court is set to weigh in on former President Donald Trump's move to oust Federal Reserve Governor Lisa Cook, marking an unprecedented challenge to the Fed's independence. The court's announcement allows Cook to stay in her position for the time being.

The Federal Reserve Act, enacted by Congress in 1913, provides a shield against political influence, permitting governor removals only "for cause." However, the law remains ambiguous, never before tested in the judicial system, until now. The case raises significant questions about executive power.

Former Fed heads and economic officials caution that permitting this removal could disrupt the Fed's autonomy, potentially harming financial markets. As the Supreme Court gears up to hear the case, its outcome could redefine the boundaries of presidential authority over independent agencies.

(With inputs from agencies.)