Supreme Court sceptical of Trump firing of central bank governor Lisa Cook

The Supreme Court appeared skeptical of the Trump administration's dismissal of Federal Reserve governor Lisa Cook during a recent hearing. Conservative Justice Neil Gorsuch expressed concern that the White House's interpretation of the law could "shatter" the Fed's independence, a crucial tenet of the central bank's policymaking. The case revolves around the president's authority to remove Federal Reserve governors before the end of their 14-year terms. The Biden administration has argued that the president has broad discretion to fire governors, while Cook's lawyers contend that such dismissals should be limited to cases of "inefficiency, neglect of duty, or malfeasance." The outcome of the case could have significant implications for the Federal Reserve's autonomy and its ability to make decisions free from political interference. The Supreme Court's questioning suggests a potential reluctance to endorse a broad interpretation of the president's removal powers, underscoring the importance of preserving the Fed's independence in the eyes of the justices.