POLITICS: Supreme Court set to review Trump’s bid to oust Fed governor – USSA News

Washington is buzzing as the U.S. Supreme Court prepares to tackle a high-stakes clash between President Donald Trump and the Federal Reserve.

The court will hear arguments on Wednesday regarding Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook, an appointee of former President Joe Biden and the first Black woman in that role. This legal battle, unfolding just four months into Trump’s second term, centers on whether the president has the authority to remove a Fed governor under the Federal Reserve Act of 1913. With control over U.S. monetary policy at stake, the case marks the second economically significant dispute involving Trump to reach the court this term, which began in October.

The issue has ignited fierce debate over the balance of power between the executive branch and the central bank. While some see Trump’s move as a necessary check on unelected officials, others warn it threatens the Fed’s independence, a cornerstone of economic stability since its creation over a century ago.

Trump’s Unprecedented Move Against Cook

Trump’s bid to fire Cook, initiated in August, stems from allegations of mortgage fraud predating her 2022 appointment to the Fed. Cook has denied the claims, calling them a pretext for her removal due to disagreements over monetary policy, as Newsmax notes.

The Federal Reserve Act limits a president’s power to dismiss a governor, permitting removal only for clear “cause,” not policy disputes. A Washington-based federal judge found Trump’s accusations likely insufficient, a ruling upheld by a federal appeals court, prompting Trump to seek Supreme Court intervention.

Legal analysts note the court, with its 6-3 conservative majority, has shown recent interest in safeguarding the Fed’s autonomy, allowing Cook to stay in her post while the case unfolds—unlike other agency officials Trump has successfully removed.

Broader Context of Economic Power Struggles

This dispute isn’t happening in isolation; it follows the court’s November arguments over Trump’s sweeping global tariffs, import taxes on nearly every U.S. trading partner under a national emergency law. Justices expressed skepticism about their legality, though rulings on both cases are expected by the end of June.

Critics of the administration argue that targeting Cook, alongside a separate criminal investigation of Fed Chair Jerome Powell over congressional testimony, reflects a push to pressure the Fed into lowering interest rates ahead of the November midterm elections. Pocketbook concerns could sway voters, and Democrats are eager to reclaim congressional control from Republicans.

Columbia Law School professor Kathryn Judge captured the stakes, saying the disputes “will be key in determining the scope of the president’s authority to unilaterally determine economic policy.” Her words ring true, but let’s be clear: unchecked executive overreach into the Fed could destabilize markets faster than a progressive tax hike.

Historical Parallels and Court Precedents

Legal scholars draw parallels to the 1930s, when the court last dove so deeply into economic policy during Franklin Roosevelt’s New Deal amid the Great Depression. Today’s cases could redefine presidential power over the economy, an area where the court has often deferred to Trump on emergency rulings in non-economic matters like immigration and military policy.

Yet, as U.C. Berkeley Law School dean Erwin Chemerinsky noted, “In Trump v. Wilcox, the court discussed the Fed being different even though it had nothing to do with that case.” That distinction, made last May when the court allowed Trump to fire labor board members, suggests a hesitance to let economic control slip fully into political hands—hardly a woke agenda, just common sense.

The court’s unsigned opinion in Trump v. Wilcox emphasized the Fed as a “uniquely structured, quasi-private entity” rooted in historical tradition. If that’s not a signal of intent to protect its independence, what is?

Weighing Fed Independence Against Executive Reach

While the court has backed Trump on numerous emergency disputes over the past 12 months, from foreign aid cuts to Education Department changes, those didn’t directly expand his grip on economic levers. The justices may be less keen to grant him unchecked sway over monetary policy, a realm that impacts every American’s wallet.

Trump’s supporters might argue he’s fighting for accountability at the Fed, but meddling with interest rates for electoral gain reeks of short-term populism over long-term stability. The Fed’s insulation from politics isn’t a bureaucratic luxury—it’s a shield against inflation spirals, as history from other nations proves.

As this case unfolds, alongside the tariffs fight, the Supreme Court stands at a crossroads. Will it preserve the delicate balance that keeps our economy steady, or hand Trump a tool to reshape it at will? The answer, due by summer, could echo for decades.

The post Supreme Court set to review Trump’s bid to oust Fed governor appeared first on Washington Digest.