Powell to attend US Supreme Court hearing on Fed governor

WASHINGTON: US Federal Reserve Chair Jerome Powell plans to attend a Supreme Court hearing Wednesday on President Donald Trump’s attempted firing of a central bank governor, a source familiar with the matter told AFP.

Powell’s expected appearance comes as the Trump administration intensifies its pressure campaign targeting the central bank, including opening a criminal investigation into the Fed chief.

Wednesday’s case involves Trump’s push last summer to fire Fed Governor Lisa Cook over claims of mortgage fraud. Cook, a key official serving on the Fed’s rate-setting committee, has challenged her ouster.

The Supreme Court in October barred Trump from immediately removing Cook – allowing her to remain in her post at least until the case is heard.

READ MORE: Central bank chiefs voice ‘full solidarity’ with US Fed, Powell

Powell’s anticipated attendance on Wednesday, which was first reported by US media and confirmed to AFP by a source with knowledge of the matter, would mark a more public show of support for Cook than before.

Earlier this month, Powell revealed that US prosecutors had opened an inquiry into him over an ongoing renovation of the Fed’s headquarters. Prosecutors have sent the Fed subpoenas and threatened a criminal indictment relating to testimony he gave last summer about the remodeling.

Powell has dismissed the investigation as a politically motivated attempt to influence the central bank’s interest rate setting.

The heads of major central banks have also thrown their support behind Powell, saying it was critical to preserve the Fed’s independence.

Asked about Powell’s planned attendance at the court, US Treasury Secretary Scott Bessent told CNBC: “If you’re trying not to politicize the Fed, for the Fed chair to be sitting there trying to put his thumb on the scale is a real mistake.”

Bessent added that Trump could reach a decision on whom to name as Powell’s successor “as soon as next week,” with the Fed chief’s term due to expire in May.