Unprecedented Showdown: Trump's Attempt to Oust Fed Governor Faces Legal Hurdles

President Trump seeks Supreme Court backing to fire Federal Reserve Governor Lisa Cook over alleged mortgage fraud, a move challenging the Fed's historic autonomy. The legality of Cook's removal under scrutiny, with broader implications for central bank independence amid Trump's assertive presidential power agenda.

President Donald Trump's administration is seeking the intervention of the U.S. Supreme Court to proceed with the dismissal of Federal Reserve Governor Lisa Cook, an unprecedented step in the Fed's history. Trump's move places the Federal Reserve's autonomy in jeopardy.

The Justice Department argues that judicial interference is obstructing the president's authority, amidst claims made by Trump of mortgage fraud against Cook, accusations she denies. Cook, an appointee of President Joe Biden, joined in favor of an interest rate cut at the Fed's recent meeting, which could bear on this legal controversy.

The U.S. Court of Appeals for the D.C. Circuit upheld a block on Cook's removal, citing a lack of due process. The Supreme Court, however, has typically sided with Trump in similar controversies. This case could have worldwide economic repercussions, as it scrutinizes the central bank's independence—a cornerstone for maintaining inflation control.

(With inputs from agencies.)