[ad_1]
Six out of nine US Supreme Court justices have indicated support for keeping a central bank interest rate-setter in her job, in defiance of the Donald Trump administration.
The White House moved last year to remove Lisa Cook, a member of the Federal Reserve’s board, from her role, claiming she had committed mortgage fraud – a claim she has strongly denied and that has resulted in no criminal charges.
Financial markets and political commentators widely saw the move as part of the US president’s efforts to force interest rate cuts out of the central bank, in defiance of its mandate and independence.
Money latest: Nationwide reveals expansion of mortgages worth six times salary
He has previously called for the removal of Fed chair Jay Powell, who spoke out against the administration earlier this month when it emerged he himself was facing a criminal investigation.
While Ms Cook – a Biden-era appointee – is bringing her own legal case, the Supreme Court heard arguments on Wednesday over whether she could stay on while her challenge plays out.
Allowing Ms Cook’s firing to go forward “would weaken, if not shatter, the independence of the Federal Reserve”, Justice Brett Kavanaugh, one of three Trump appointees on the nation’s highest court said.
At least five other justices on the nine-member panel also sounded sceptical about the effort to remove her from office, according to reporters.
No president has fired a sitting governor in the 112-year history of the Fed, which was structured to be independent of day-to-day politics.
It cut interest rates three times during 2025 as worries about a collapse in hiring later outweighed concerns about…
[ad_2]
