Supreme Court to Weigh Fed Governor's Unprecedented Dismissal

The U.S. Supreme Court will hear arguments on January 21 regarding President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook. This unprecedented move challenges the central bank's independence. A lower court previously blocked Trump's actions, questioning their validity under the Federal Reserve Act.

The U.S. Supreme Court announced on Wednesday that it will hear arguments on January 21 in a case challenging the independence of the Federal Reserve. President Donald Trump seeks to remove Fed Governor Lisa Cook, an action without precedent that tests the central bank's established autonomy.

In October, the justices agreed to hear arguments in order to decide on a Justice Department request to lift a judge's order temporarily blocking Trump's removal of Cook. Appointed under former President Joe Biden, Cook's removal is contested under a 1913 law meant to protect the Fed from political interference.

The case raises questions about executive overreach, with lower courts so far siding with Cook, who has denied Trump's allegations of mortgage fraud. As the date approaches, the Supreme Court's conservative majority may consider revisiting historical protections, weighing whether the Fed's unique status justifies a special consideration.

(With inputs from agencies.)