Supreme Court appears skeptical of Trump's bid to fire Fed Governor Lisa Cook

The Supreme Court heard arguments over President Trump's attempt to remove Federal Reserve Governor Lisa Cook; justices focused on whether Cook received adequate due process and raised concerns about the effect on the Fed's independence.

The Supreme Court heard two hours of arguments in the case over President Trump's attempt to remove Federal Reserve Governor Lisa Cook. Justices questioned the administration's decision to act without notice or a hearing and discussed the implications for the central bank's independence. Cook has denied the allegations against her and has not been charged with wrongdoing. A lower-court judge blocked the removal while Cook's legal challenge continues. What the justices noted: - Several justices signaled reluctance to lift the injunction that prevents Cook's immediate removal. - A central issue was whether Cook was denied due process under the Fifth Amendment when the administration announced her firing without a formal hearing. - Justice Amy Coney Barrett asked why the administration did not give Cook an opportunity to respond to the allegations. - Justice Brett Kavanaugh indicated he is likely to vote for Cook, saying the case could weaken the Federal Reserve's independence if mishandled. - Chief Justice John Roberts questioned whether the evidence looked like an inadvertent paperwork mistake rather than intentional misconduct. - Some justices raised "big picture" concerns about the economic consequences if a precedent allowed presidents to remove Fed governors over policy disagreements, noting economists' warnings that a removal could risk recession. Summary: A ruling for Cook would reinforce the injunction and underscore procedural protections, while a ruling for the administration could change how Fed governors are removed and carry broader economic implications. Undetermined at this time.