Lisa Cook case tests Fed independence at U.S. Supreme Court

The U.S. Supreme Court will hear a case over President Trump's attempt to remove Federal Reserve Governor Lisa Cook, after a lower court left her in office pending appeal. The outcome could clarify how strictly the Federal Reserve Act protects governors from presidential removal.

The U.S. Supreme Court is set to hear a case over President Trump's effort to remove Federal Reserve Governor Lisa Cook. The dispute centers on allegations tied to a mortgage application and whether those allegations meet the "cause" standard in the Federal Reserve Act. A lower court left Cook in her position while the case proceeds. The hearing could define how strictly the law insulates Fed governors from presidential removal. Key facts: - President Trump announced last August he was firing Fed Governor Lisa Cook over alleged misrepresentation on a mortgage application. - No criminal charges have been filed, no financial institution has accused her of fraud, and there has been no administrative proceeding reported. - A lower court left Cook in her job pending appeal, and the administration has taken the matter to the U.S. Supreme Court. - The Supreme Court will hear oral arguments, and Federal Reserve Chair Jerome Powell is reported to attend the hearing. Summary: The case asks whether the "cause" removal standard in the Federal Reserve Act limits presidential power to remove governors and how strictly that limit is applied. The Supreme Court will hear arguments and a ruling could clarify the legal protections for Fed governors; the timing and scope of any decision are undetermined at this time.