Supreme Court to Address Fed Governance: A Pivotal Case for Central Bank Independence

The U.S. Supreme Court will hear arguments in January about President Trump's move to remove Federal Reserve Governor Lisa Cook, a decision that tests the central bank's independence. Trump's claims against Cook, the first Black woman as Fed governor, are challenged legally, highlighting the importance of Fed autonomy.

The U.S. Supreme Court has announced plans to hear arguments regarding President Donald Trump's unprecedented move to remove Federal Reserve Governor Lisa Cook, a case poised to challenge the independence of the central bank. Arguments are set for January 21, marking a significant test for the autonomy of the Fed.

Federal Reserve Governor Lisa Cook, who serves as the first Black woman in the role, has faced allegations of mortgage fraud by President Trump, which she has strongly denied. Washington-based U.S. District Judge Jia Cobb has ruled that these allegations fall short of justifying Cook's dismissal under the Federal Reserve Act.

The Supreme Court's conservative majority has previously allowed Trump to remove members from federal agencies. However, it now faces a unique situation, as the Court plans to first hear arguments before deciding on Cook's removal, recognizing the Federal Reserve's distinct structure and importance.

(With inputs from agencies.)