Federal Reserve Chair Jerome Powell will attend the Supreme Court’s oral argument on Wednesday in a case involving the attempted firing of Fed governor Lisa Cook, the Associated Press reported.
The high court is considering whether President Donald Trump can fire Cook, who has sued to keep her job, AP said. Trump said in late August that he would fire Cook, AP reported.
Powell’s planned attendance was described to AP by a person familiar with the matter who spoke on condition of anonymity. The report said the appearance is a more public show of support than the Fed chair has previously shown Cook, but it follows recent steps by the Trump administration and Powell’s response.
AP said the Supreme Court dispute comes after Powell announced last week that the Trump administration has sent subpoenas to the Fed. AP reported that Powell said the subpoenas threaten an unprecedented criminal indictment of the Fed chair, and that Powell’s posture appeared to shift from last year’s more subdued response to the administration’s repeated attacks on the central bank.
In a video statement released Jan. 11, Powell condemned the subpoenas as “pretexts” for Trump’s efforts to force him to sharply cut the Fed’s key interest rate, AP reported. AP also said Powell oversaw three rate cuts late last year, lowering the rate to about 3.6%, while Trump has argued it should be as low as 1%.
The Trump administration has accused Cook of mortgage fraud, which AP said Cook has denied. AP reported that no charges have been made against Cook.
Cook asked the courts to keep her position, and AP said the Supreme Court issued a brief order on Oct. 1 allowing her to stay on the board while the justices consider her case. The oral argument Wednesday will test whether Trump has the authority to remove her, according to AP’s description of the question before the court.
AP said that if Trump succeeds in removing Cook, he could appoint another person to fill her slot. The report said the result could give Trump’s appointees a majority on the Fed’s board and greater influence over interest rates and bank regulation.