A major development in Trump's Fed feud is set to happen next week in the Supreme Court
CNBC • • nation
Key Points:
- The Supreme Court will hear arguments on January 21 regarding President Trump's attempt to remove Federal Reserve Governor Lisa Cook, accused by the administration of mortgage fraud, which could set a precedent for removing Fed Chair Jerome Powell.
- Powell has been subpoenaed by the Justice Department over a multimillion-dollar Fed renovation project investigation, raising the stakes in the ongoing political battle over the Fed's independence.
- If the court rules against Cook, it could increase the likelihood that Powell might be removed, despite his term as chair ending in May, as his Board of Governors term extends to 2028.
- Analysts suggest Powell might choose to remain on the Fed board as a defender of its independence, even amid political pressure and potential prosecution, drawing parallels to historical Fed resistance
