WASHINGTON — Federal Reserve Chairman Jerome Powell will attend Supreme Court oral arguments Wednesday in a case examining whether President Donald Trump can fire Federal Reserve Governor Lisa Cook, according to a person familiar with Powell’s plans.
The Supreme Court initially allowed Cook to remain in office in October as it prepared to hear arguments in January.
Powell’s planned attendance comes as he engages in a broader battle to preserve the Fed’s independence from political pressure. Earlier this month, the Federal Reserve Chairman announced that the Justice Department had served the central bank with grand jury subpoenas and threatened criminal indictment.
The subpoenas, which focus on a $2.5 billion renovation of the Fed’s buildings, came after Trump repeatedly pressured the central bank to cut interest rates further. He criticized Chairman Powell in particular, calling him “too late” and “the biggest loser.”
The Federal Reserve Board declined to comment on Powell’s attendance at the arguments This was first reported by the Associated Press. NBC News has reached out to the White House for comment.
Powell said The threatened indictment was related to his June testimony before the Senate about the renewals, but he said “those are just pretexts.”
“The threat of criminal charges is the result of the Fed setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences,” he said.
Trump said in August that he would remove Cook from her position, citing allegations of mortgage fraud by Federal Housing Finance Agency Director William Bolte.
The Federal Reserve Act prohibits presidents from removing their governors unless there is evidence of wrongdoing. Cook denied the allegations, and NBC News previously reported that bank documents appeared to contradict the allegations.
In a statement shortly after Trump tried to fire Cook, her lawyer Abby Lowell said Trump “does not have the authority to fire Federal Reserve Governor Lisa Cook.”
“His attempt to evict her, based solely on a referral letter, lacks any factual or legal basis,” he said in a statement at the time.
Cook’s term as Fed governor is scheduled to end in January 2038.
Lawrence Hurley Contribute.