Powell Frames Lisa Cook Firing Case as a Defining Moment for Fed Governance

Fed Chair Jerome Powell says the Supreme Court case over President Trump’s bid to fire Fed Governor Lisa Cook could be the most consequential legal matter in the Fed’s history, underscoring the potential limits of presidential removal power and the governance of the central bank. He defended attending the oral arguments, cited Paul Volcker as a precedent, and warned against politicizing the Fed, while noting the ruling could set an important precedent about when a board member can be removed for cause; he also pushed back on administration pressure via subpoenas amid rate-cut discussions.