Enda Curran
(Bloomberg) — Federal Reserve Chair Jerome Powell plans to attend Wednesday’s Supreme Court hearing over the attempted dismissal of Fed Governor Lisa Cook by President Donald Trump, according to a person familiar with the situation.
The high court in October refused to allow Trump to immediately oust Cook while she sues to keep her job. That order meant Cook can remain in her position, at least until the justices rule after hearing oral arguments in the case this week.
Trump ordered her dismissal in late August over unproven mortgage fraud allegations that Cook has denied.
Fed watchers and legal analysts say the outcome of the case will have a profound impact on the president’s ability to fire Fed governors and, by extension, on the central bank’s ability to set interest rates free of political interference.
Powell’s planned appearance at the hearing, first reported by the Associated Press, has taken on extra potency after he said last week the Fed had been served grand jury subpoenas from the Justice Department threatening a criminal indictment linked to renovations of the central bank’s headquarters in Washington, and to Powell’s testimony before Congress on the project.
That move marked a dramatic escalation of the Trump administration’s attacks on the institution and stoked warnings from lawmakers and investors that the decision to serve subpoenas is a clear threat to the central bank’s independence.
Prior to that Powell had appeared reluctant to make any public comments that might inflame the president. Asked about the Cook case during a Dec. 10 press conference, he chose not to respond, saying, “We’re not legal commentators. It’s before the courts.”
–With assistance from Amara Omeokwe.