Supreme Court agrees to hear arguments in case on Federal Reserve independence

FILE PHOTO: A general view of the U.S. Supreme Court building in Washington, U.S., June 1, 2024. REUTERS/Will Dunham/File Photo Will Dunham/Reuters

The Supreme Court agreed Wednesday to decide whether President Donald Trump can temporarily fire Lisa Cook from the Federal Reserve, setting up a blockbuster showdown over the independence of an agency with vast power over the American economy.

The court said it would hear arguments in the case in January. Cook will remain in the job for now because the court deferred a decision on Trump’s request to remove her immediately.

The high court’s move came months after a majority of justices appeared to draw a line of protection around the Fed, calling the rate-setting agency a “uniquely structured” entity with a “distinct historical tradition”