Trump's Unprecedented Fed Challenge: Independence Under Fire at Supreme Court

The Trump administration defended its decision to dismiss Federal Reserve Governor Lisa Cook before the U.S. Supreme Court. The case examines presidential power in removing Fed officials, focusing on unproven mortgage fraud allegations against Cook. Justices questioned procedural fairness and economic implications of Cook's removal.

A lawyer from Donald Trump's administration appeared before the U.S. Supreme Court to argue for the dismissal of Federal Reserve Governor Lisa Cook, highlighting the president's unprecedented attempt to challenge the Fed's independence. The high-profile case examines the extent of presidential power in removing Fed officials.

The Trump administration's legal stance is centered on unproven allegations of mortgage fraud against Cook, which the president cited as justification for her removal. Justices probed the implications of such a move on the economy, with concerns about triggering a recession and public interest.

Central to the debate is whether Cook was entitled to a formal hearing before removal, a point that has attracted critical scrutiny from both conservative and liberal justices. The case has significant ramifications for the Federal Reserve's autonomy and its ability to conduct monetary policy free from political influence.

(With inputs from agencies.)