Wed, 21 Jan 2026

Wed, 21 Jan 2026 Supreme Court sceptical of Trump firing of Lisa Cook

One conservative justice warned that the White House interpretation of the law could "shatter" Federal Reserve independence.

* Supreme Court justices from both left and right sides expressed concerns about process and implications for central bank independence and the economy.
* Justice Brett Kavanaugh, a conservative appointed by Trump, questioned the administration's interpretation of the law and warned that it would "weaken, if not shatter, the independence of the Federal Reserve".
* The White House claims to have met the requirement to remove governors for "cause", but lower courts had blocked the removal.
* Solicitor general D John Sauer argued that the case was not about process, but about whether Cook committed mortgage fraud.
* Cook's lawyers disputed the allegations and said she did not receive due process.
* The justices indicated that they shared concerns about the administration's interpretation of the law and the implications for central bank independence.
* Kavanaugh stated that the administration's position would "weaken if not shatter" the independence of the Federal Reserve.
* Several justices, including conservatives, expressed hesitation to greenlight Cook's removal without resolving issues like whether the mortgage filings meet the bar for a "for cause" firing.
* The court is seen as high stakes, given debate about Trump's efforts to influence the Fed and lower interest rates.
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