Supreme Court Justices Question Trump's Attempt to Remove Fed Governor Lisa Cook

The U.S. Supreme Court, including both conservative and liberal justices, expressed skepticism over President Trump's effort to dismiss Federal Reserve Governor Lisa Cook. Central to the case is Cook's role in maintaining the Fed's independence from political influence, which Trump challenged based on disputed mortgage fraud allegations.

In a high-stakes legal battle with significant implications for the Federal Reserve's independence, the U.S. Supreme Court justices demonstrated skepticism towards President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook. During the proceedings, held on Wednesday, the justices, including conservatives, probed into Trump's justification for the dismissal based on mortgage fraud allegations that Cook denies.

The case revolves around the central question of whether a president can unilaterally remove a Federal Reserve governor without undermining the institution's decades-long tradition of independence. Justice skepticism centered on the lack of a formal response opportunity for Cook, despite the administration's accusations, potentially impacting future Fed operations.

This legal dispute represents one of the most significant challenges to the Fed's autonomy since its establishment in 1913. As justices deliberated, concerns were raised about the potential effects on the U.S. economy, should the Fed's independence be compromised, highlighting the delicate balance between political powers and financial stability.

(With inputs from agencies.)