Federal Reserve Power Struggle: Powell's Historic Move at Supreme Court Hearing

Source: CryptoNewsNet Original Title: Unprecedented Move from Fed Chairman Jerome Powell: Watch Out for Wednesday Original Link: According to recent reports, Federal Reserve Chairman Jerome Powell will attend an oral hearing at the U.S. Supreme Court regarding the case involving Federal Reserve Board member Lisa Cook. Powell’s personal attendance at Wednesday’s hearing represents a rare and noteworthy show of support from a central bank governor.

The Supreme Court is examining whether President Donald Trump can remove Cook from his post, as suggested in late August. Trump’s attempt to remove a member of the Federal Reserve’s seven-member board of governors is considered an unprecedented move in modern times.

Powell’s move represents a more visible stance than his previous support for Cook. This comes after the Trump administration sent notices to the Fed and threatened an unprecedented criminal investigation against Powell. In a video message released in January, Powell characterized the notices as “pretexts” by Trump to force the Fed to sharply cut policy interest rates. Powell had overseen three rate cuts that brought the rate down to approximately 3.6 percent, while Trump argues that rates should be lowered to 1 percent—a view not supported by the vast majority of economists.

The Trump administration accuses Cook of mortgage fraud, though Cook denies these allegations and there are no formal charges. Cook filed a lawsuit to retain his position, and the Supreme Court issued a temporary ruling allowing him to remain in office while legal proceedings continue.

Analysts note that if Trump succeeds in removing Cook, he could appoint someone of his choosing. This could result in Trump-appointed members gaining a majority on the Fed’s board of governors, potentially increasing their influence over the central bank’s interest rate policy and banking regulations.

*This is not investment advice.