Powell personally visits the Supreme Court to support Cook, defending the Federal Reserve's independence

According to the Associated Press, Federal Reserve Chair Jerome Powell will personally attend oral arguments at the Supreme Court this Wednesday, in an effort to support Fed Governor Lisa Cook, who faces the threat of dismissal from President Trump. The case stems from Trump’s attempt to remove sitting governors in an unprecedented manner, challenging the legal boundaries of central bank personnel appointments and institutional independence. Powell’s action not only publicly supports his colleague but also marks a shift in the Fed’s stance from past low-profile responses to a more proactive stance when facing administrative pressure.

Powell Appears in Court: A Rare Public Statement

Powell’s decision to attend the Supreme Court hearing is seen as a highly symbolic show of support for Governor Cook. President Trump declared last August that he would dismiss Cook, citing allegations of mortgage fraud involving two properties she owns. If true, this would be a rare case in U.S. history of executive interference in the personnel operations of an independent central bank. The Supreme Court is currently reviewing whether the President has the authority to remove Fed governors without specific “just cause.” Powell’s attendance is not only a legal concern but also a strong political gesture, signaling unity within the Federal Reserve and a firm stance to defend its statutory independence, refusing to allow executive power to excessively interfere in monetary decision-making.

Powell Subpoena Controversy and Criminal Threats

Last week, the U.S. Department of Justice issued a subpoena to the Federal Reserve and even threatened to bring unprecedented criminal charges against Powell. In response to these actions, Powell issued a video statement on January 11, condemning the subpoenas as merely an “excuse” created by the administration to force the Fed to cut rates sharply. Unlike the relatively silent stance taken during Trump’s frequent criticisms over the past year, Powell chose to publicly counter this time, indicating that the Fed has recognized that administrative measures are severely interfering with its operations. This escalation from verbal criticism to legal confrontation highlights the serious test of the checks and balances between the U.S. executive and monetary authorities, with market concerns that this could undermine the credibility of Fed decision-making.

(Federal Reserve Chair Powell Under Criminal Investigation! My Response: Political Threats Under the Guise of Law)

Trump and the Fed’s Interest Rate Dispute

The core of the political struggle always revolves around the direction of monetary policy. Powell led three rate cuts at the end of last year, lowering the federal funds rate to 3.5%~3.75%, aiming to balance inflation control and economic growth. However, Trump insists that rates should be further lowered to 1%, a radical stance rarely supported by mainstream economists, as excessive easing in the current economic environment could trigger inflation rebound or asset bubbles. The Fed emphasizes that decisions should be data-driven rather than politically motivated. If the central bank succumbs to political pressure and deviates from professional judgment, it could damage the dollar’s international reputation and shake global financial markets’ confidence in U.S. asset pricing mechanisms.

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