WASHINGTON — Federal Reserve Chair Jerome Powell will attend Supreme Court oral arguments Wednesday in a case addressing whether President Donald Trump can fire Fed 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 wages a broader battle to preserve the Fed’s independence from political pressure. Earlier this month, the Fed chair announced that the Justice Department served the central bank with grand jury subpoenas and threatened a criminal indictment.
The subpoenas, which focus on a $2.5 billion renovation of Fed buildings, came after Trump has repeatedly pressured the central bank to lower interest rates further. The president has lashed out at Powell in particular, criticizing him as “too late” and “a major loser.”
The Federal Reserve declined to comment on Powell attending the arguments, which was first reported by The Associated Press. NBC News has reached out to the White House for comment.
Powell said that the threatened indictment was related to his June testimony to the Senate about the renovations, but argued that “those are pretexts.”
“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,” he said.
Trump said in August that he was removing Cook from her position, citing Federal Housing Finance Agency Director William Pulte’s accusations of mortgage fraud.
The Federal Reserve Act restricts presidents from removing governors unless there is evidence of wrongdoing. Cook has denied the allegations, and NBC News has previously reported that bank documents appear to contradict the allegations.
In a statement shortly after Trump attempted to fire Cook, her lawyer Abbe Lowell said that Trump “has no authority to remove Federal Reserve Governor Lisa Cook.”
“His attempt to fire 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 set to end in January 2038.
Lawrence Hurley contributed.