Kavanaugh warns Trump case could 'shatter' Federal Reserve independence in Supreme Court hearing

Supreme Court weighs whether Trump has broad authority to fire Federal Reserve Governor Lisa Cook, who Trump alleges committed mortgage fraud but hasn't been charged.

Supreme Court Justice Brett Kavanaugh (Reuters)

Sauer said he disagreed and that the law requiring a Federal Reserve governor to be fired for cause was, in fact, a "high bar."

"It's our very strong protection because it does protect them from the one thing that Congress was apparently most worried about, which is a removal for policy disagreement," Sauer said. 

The high-stakes case stems from Cook, who was represented during oral arguments by renowned conservative attorney Paul Clement, suing over Trump removing her from the Federal Reserve's powerful seven-member board of governors.

Cook was appointed by former President Joe Biden. Board members serve 14-year terms, and no president has ever fired a single one.

President Donald Trump speaking during a campaign event, Jan. 21, 2024.  (AP Photo/Charles Krupa)

Kavanaugh also raised a bigger picture question, asking Sauer what the implications of deciding in favor of Trump would mean for future administrations.

"Let's talk about the real-world, downstream effects of this, because if this were set as a precedent, it seems to me, just thinking big picture, what goes around, comes around," Kavanaugh said. "All the current president's appointees would likely be removed for cause on Jan. 20, 2029, if there's a Democratic president or Jan. 20, 2033. And then, we're really at at-will removal."

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Justices across the ideological spectrum voiced skepticism about Trump's ability to fire Cook. Justice Sonia Sotomayor, an Obama appointee, said she found the whole case unusual, noting that Trump first raised Cook's termination through social media.

"This whole case is irregular, starting with a Truth Social notice, or thinking of it as notice at all, certainly didn't invite an opportunity to be heard. But that's where we are," Sotomayor said.

Fox News’ Bill Mears contributed to this report.

Ashley Oliver is a reporter for Fox News Digital and FOX Business, covering the Justice Department and legal affairs. Email story tips to ashley.oliver@fox.com.

https://www.foxnews.com/politics/kavanaugh-warns-trump-case-could-shatter-federal-reserve-independence-supreme-court-hearing