Chairman Jerome Powell speaks with Lisa Cook at the Federal Reserve Board building in Washington, D.C., on June 25, 2025. (Saul Loeb/AFP/Getty Images)
Last week, the nation's highest court heard oral arguments for two hours on whether President Donald Trump has the authority to remove Cook from the Federal Reserve’s Board of Governors. The court is expected to issue a ruling in the case by summer.
Cook's legal fight traces back to late August, when Trump said he was firing her from the board.
He alleged she misrepresented information related to a trio of mortgages she obtained before joining the central bank. Cook has denied any wrongdoing and has not been charged with a crime.
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President Donald Trump and Federal Reserve Governor Lisa Cook. (Andrew Harnik/Al Drago/Getty Images)
What's more, Powell’s long-standing insistence on finishing his term, which ends in May, now comes amid a Justice Department criminal investigation into his congressional testimony on the Federal Reserve’s headquarters renovation.
Powell confirmed the investigation and said he respected the rule of law and congressional oversight, but described the action as "unprecedented" and driven by political pressure.
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Jerome Powell during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on May 7, 2025. (Tierney L. Cross/Bloomberg/Getty Images)
Asked by reporters at the Federal Reserve for further comment, Powell declined to discuss the Justice Department investigation, pointing instead to remarks he made in a video statement on Jan. 11.
His decision to address the issue so publicly, after days of private consultations with advisors, marked a sharp departure from the central banker’s typically measured approach.
What comes next remains unclear, as the Federal Reserve navigates largely uncharted territory.
Amanda covers the intersection of business and politics for Fox News Digital.
https://www.foxnews.com/politics/powell-warns-lisa-cooks-supreme-court-case-could-most-consequential-legal-threat-feds-history