Historic Court Clash: Trump's Bid to Oust Fed Governor Lisa Cook

The U.S. Supreme Court is set to hear arguments in January regarding Donald Trump's unprecedented attempt to remove Federal Reserve Governor Lisa Cook. This legal battle, questioning the president's power over an independent central bank, could have major implications for monetary policy and the Fed's autonomy.

The U.S. Supreme Court agreed to hear a case in January that could redefine presidential power over the Federal Reserve. Former President Donald Trump seeks to remove Governor Lisa Cook, marking the first presidential attempt to dismiss a Fed official. The decision may impact central bank independence.

Trump's allegations against Cook, accusing her of mortgage fraud, are challenged by her as insufficient grounds for her removal under the Federal Reserve Act. Lower courts have temporarily blocked Cook's ouster, and the Supreme Court's upcoming decision could set a significant precedent.

This case draws attention to the broader issue of central bank autonomy. Trump's actions could reshape how U.S. monetary policy is influenced by politics, with potential ripple effects on the global economy. The Supreme Court's ruling may determine the extent of presidential authority over independent agencies like the Fed.

(With inputs from agencies.)