Powell Plans Another Public Stand Against White House

Fed chief Jerome Powell now appears to be leaning into his fight with President Trump. Both the New York Times and the AP report that Powell will be in attendance at the Supreme Court on Wednesday when justices hear arguments on whether Trump can fire Lisa Cook as a Federal Reserve governor. The case has high stakes in regard to the central bank's independence from the White House.

At issue is whether presidents can dismiss Fed governors more freely, or only "for cause," as Cook argues the law requires. The administration accuses her of mortgage fraud tied to loan documents signed before she joined the Fed. She has not been charged with any crime and denies the allegations. The Supreme Court has allowed her to remain in her position while the case proceeds.

Powell's court appearance to support Cook comes amid his own escalating clash with the administration. The Justice Department recently served the Fed with grand jury subpoenas involving a $2.5 billion renovation of the central bank's Washington headquarters. In response, Powell delivered a rare public rebuke, calling the move an attempt to punish him for not lowering interest rates as quickly as Trump wants.