{"id":2546211,"date":"2026-01-21T08:55:00","date_gmt":"2026-01-21T13:55:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-battle-with-the-federal-reserve-faces-supreme-court-test-4\/"},"modified":"2026-01-21T08:56:30","modified_gmt":"2026-01-21T13:56:30","slug":"trumps-battle-with-the-federal-reserve-faces-supreme-court-test-4","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-battle-with-the-federal-reserve-faces-supreme-court-test-4\/","title":{"rendered":"Trump&#8217;s battle with the Federal Reserve faces Supreme Court test"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrumps-battle-with-the-federal-reserve-faces-supreme-court-test-4%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2546211&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Supreme Court will hear emergency oral arguments over whether President Trump may lawfully fire Federal reserve governor Lisa Cook after he removed her following a referral to the Justice Department over alleged mortgage fraud. Cook sued, and lower courts reinstated her; the governance appealed to the high court, which will decide whether Trump showed sufficient cause for the removal. The dispute is part of a broader public feud between Trump and the Fed, including pressure over interest-rate policy and recent revelations that Fed Chair Jerome Powell was <a href=\"https:\/\/amzn.to\/3YuVZYV\" >served grand-jury subpoenas tied<\/a> to an inquiry of renovations at the Fed building. Powell has warned that criminal investigations tied to Fed decisions risk politicizing monetary policy.The Supreme Court has previously signaled that the Fed&#8217;s unique, quasi-private structure may warrant greater protection against presidential removals, and several justices have expressed concern about claims of unfettered firing power. The court&#8217;s decision is expected in the coming weeks.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Trump&rsquo;s battle with the Federal Reserve faces Supreme Court test<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2478006\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump&rsquo;s<\/a> public feud with the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\">Federal Reserve<\/a> will make its way to the Supreme Court on Wednesday, when the justices weigh whether the president may fire Fed Governor <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/lisa-cook\/\">Lisa Cook<\/a>.<\/p>\n<p>The<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/supreme-court\/\"> Supreme Court&rsquo;s<\/a> oral arguments in the emergency docket case come just over a week after Federal Reserve Chairman Jerome Powell announced he was <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4415360\/what-we-know-doj-investigation-powell\/\">under investigation<\/a> by the Department of Justice.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4426421\/california-gop-supreme-court-house-map-midterm-elections\/\">California GOP asks Supreme Court to block House map ahead of midterm elections<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4425712\/alito-accuses-hawaii-relegating-gun-rights-second-class-status\/\">Alito accuses Hawaii of relegating gun rights to &#8216;second-class status&#8217;<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4425402\/sotomayor-asks-why-gun-owners-have-right-enter-private-property-armed\/\">Sotomayor asks why gun owners should have right to enter private property while armed<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>The case involving Cook is another test of the president&rsquo;s firing ability, but also another chapter in Trump&rsquo;s battle with the Fed.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-tensions-with-the-federal-reserve-have-mounted-in-recent-months\">Tensions with the Federal Reserve have mounted in recent months<\/h2>\n<p>Since Trump <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4426276\/tariffs-greenland-takeaways-trump-first-anniversary-press-briefing\/\">returned to the White House <\/a>a year ago, he has expressed displeasure with Powell&rsquo;s job as Fed chairman. Every few months, reports have swirled that Trump was considering firing Powell, despite restrictions on a president&rsquo;s ability to fire the Fed chairman without cause.<\/p>\n<p>Much of Trump&rsquo;s discontent is with Powell&rsquo;s handling of interest rates, believing the chairman has been too slow to lower them. Amid the speculation about Trump wanting to fire Powell, the two toured renovations of the Federal Reserve building in July. During the tour, Trump <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3481679\/trump-tours-fed-construction-powell-awkward-encounter\/\">sparred<\/a> with Powell in front of cameras over the cost of the renovations.<\/p>\n<p>Roughly a month after the awkward tour, the president escalated his feud with the Federal Reserve by firing Cook shortly after&nbsp;Federal Housing Finance Agency&nbsp;Director Bill Pulte referred her to the Justice Department for mortgage fraud. Trump cited the mortgage fraud allegation as grounds to fire Cook.<\/p>\n<p>Cook sued Trump, alleging he did not show proper cause to fire her. A federal district court reinstated her, a ruling which was upheld by a federal appeals court, leading the Trump administration to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/3813857\/trump-asks-supreme-court-fire-fed-governor-lisa-cook\/\">appeal<\/a> to the Supreme Court&rsquo;s emergency docket. In October, the high court announced it would <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/3832013\/supreme-court-lisa-cook-firing-january-oral-arguments\/\">defer<\/a> ruling on the emergency petition until after Wednesday&rsquo;s hearing &ndash; but it allowed Cook to remain in her job in the interim.<\/p>\n<p>While the president has not tried to fire Powell, a significant escalation of the tensions between Trump and the chairman occurred early last week, when Powell announced he had been <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-ignored-doj-inquiry-into-powell-on-multiple-occasions-pirro-3\/\" title=\"... ...ignored... DOJ inquiry into ... on ...multiple occasions...: Pirro\">served grand jury subpoenas<\/a> by the DOJ. In a video message announcing the revelation, Powell took direct aim at Trump for the criminal investigation, which is said to involve false statements about the Federal Reserve building renovations.<\/p>\n<p>&ldquo;The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,&rdquo; Powell said. <\/p>\n<p>&ldquo;This is about whether the Fed will be able to continue to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18\/\" title=\"Banking groups oppose Hawley...s bill to limit credit card rates at 18%.\">set interest rates based<\/a> on evidence and economic conditions &mdash; or whether instead monetary policy will be directed by political pressure or intimidation,&rdquo; he added.<\/p>\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">Trump will be in Switzerland on Wednesday, far from oral arguments on Capitol Hill, while Powell is expected to be in&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4424288\/powell-attend-supreme-court-hearing-trump-power-fire-fed-governor\/\">attendance<\/a>&nbsp;as the Supreme Court, skeptical of removals from the Federal Reserve, hears arguments.<\/span><\/p>\n<h2 class=\"wp-block-heading\" id=\"h-supreme-court-has-been-hesitant-with-federal-reserve-removals\">Supreme Court has been hesitant with Federal Reserve removals<\/h2>\n<p>Trump&rsquo;s firing of independent agency heads has been a hot issue at the Supreme Court over the past year, with various emergency docket cases and a full merits case coming before the high court. In each of the three emergency docket cases, the Supreme Court has allowed the firings to proceed while litigation plays out.<\/p>\n<p>When the Supreme Court first allowed Trump to fire an independent agency head via an emergency docket order in May, it noted that it considered the Federal Reserve unique and subject to a higher bar for firings. The unsigned majority order in <em>Trump v. Wilcox<\/em> noted the Fed has &ldquo;a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,&rdquo; signaling the need for cause to fire one of its members.<\/p>\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">During oral arguments in&nbsp;<em>Trump v. Slaughter<\/em>&nbsp;last month, several justices expressed their &ldquo;concern&rdquo; over the implications of the Trump administration&rsquo;s position that the president has unfettered power to fire independent agency heads.<\/span><\/p>\n<p>&ldquo;Any issues of removal restrictions as a member of the Federal Reserve would raise their own set of unique, distinct issues,&rdquo; Solicitor General D. John Sauer acknowledged to the justices during separate arguments in December 2025.<\/p>\n<p>The Supreme Court will weigh whether the president has shown sufficient cause to fire Cook, unlike in the <em>Slaughter<\/em> arguments, where the DOJ argued Trump did not have to show cause for other independent agency head firings.<\/p>\n<p>When firing Cook, Trump cited 2021 allegations that she claimed two different homes as her primary residences to secure more generous loan terms.<\/p>\n<p>&ldquo;Her conduct creates an intolerable appearance of impropriety in financial matters&mdash;yet Cook and her supporting amici have to date refused to offer any explanation for her facially inconsistent representations in any briefing in any court,&rdquo; the DOJ&rsquo;s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.supremecourt.gov\/DocketPDF\/25\/25A312\/385182\/20251119160740717_25A312%20--%20Trump%20v.%20Cook%20-%20Supp.%20Br..pdf\">brief<\/a> in the <em>Cook<\/em> case said.<\/p>\n<p>Cook&rsquo;s lawyer argued that the president is trying to remove her by basing his case on &ldquo;untested allegations,&rdquo; and implored the Supreme Court to allow her to remain in her position.<\/p>\n<p>&ldquo;Governor Lisa D. Cook vigorously contests the asserted basis for that removal as a matter of fact and law, and looks forward to debunking allegations that stem from an investigation launched by a presidential subordinate that has not led to any finding of wrongdoing,&rdquo; Cook&rsquo;s lawyers said in their <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.supremecourt.gov\/DocketPDF\/25\/25A312\/385180\/20251119155936464_Cook%20Supplemental%20Brief.pdf\">brief<\/a> to the high court.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/3908676\/supreme-court-grapples-executive-power-independent-agencies\/\">SUPREME COURT GRAPPLES WITH HOW MUCH EXECUTIVE POWER INDEPENDENT AGENCIES REALLY EXERT<\/a><\/strong><\/p>\n<p>&ldquo;The President nevertheless insists that the status quo should be altered and Governor Cook should be removed from her office before any facts are found,&rdquo; the brief added.<\/p>\n<p>Arguments in the emergency docket case will begin at 10 a.m., with a decision expected in the coming weeks.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court to rule on Trump firing Fed governor<\/p>\n","protected":false},"author":2638,"featured_media":2546212,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/01\/AP26012598382150.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[32663,56572,32275,3634],"class_list":["post-2546211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-federal-reserve","tag-separation-of-powers","tag-supreme-court","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/01\/AP26012598382150.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2546211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2638"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2546211"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2546211\/revisions"}],"predecessor-version":[{"id":2546215,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2546211\/revisions\/2546215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2546212"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2546211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2546211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2546211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}