Supreme Court Skeptical of Trump's Bid to Remove Fed Governor Cook - COOK, TRUMP

The U.S. Supreme Court signaled skepticism Wednesday over President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook amid unproven mortgage-fraud allegations, with justices across ideological lines warning the move could undermine the Fed’s independence and destabilize financial markets. During oral arguments in Washington, even Trump-appointed Justices Brett Kavanaugh and Amy Coney Barrett expressed concern. Kavanaugh said the action could “weaken if not shatter” the Fed’s autonomy, while Barrett cited risks to market stability. The case, Trump v. Cook (25A312), stems from an emergency request to temporarily oust Cook while litigation proceeds. Cook, who denies wrongdoing and called the claims based on “incomplete snippets,” argues her procedural rights were violated. Her lawyer, Paul Clement, described any errors as “inadvertent.” The administration alleges she misrepresented primary residences on mortgage applications in 2021. Justices questioned the rushed nature of the executive action, with Samuel Alito asking why the matter was handled in such a “hurried manner.” A bipartisan group of former Treasury secretaries and Fed chairs warned a ruling for Trump could erode public confidence in monetary policy. The court may weigh economic consequences before deciding.