Wall Street is relying on the Supreme Court to protect the Fed. Is that wishful thinking?

Federal Reserve Chair Jerome Powell holds a press conference in Washington, DC, on October 29, 2025. Kevin Lamarque/Reuters Washington —

Wall Street barely blinked at President Donald Trump’s attacks on the Federal Reserve this year. But its confidence could be shaken with an upcoming Supreme Court ruling.

Trump has launched an intense pressure campaign against the Fed during his second term, frequently demanding interest-rate cuts and threatening to fire Chair Jerome Powell. The central bank has lowered interest rates twice this year, in September and October, and has another opportunity to cut rates in December.

Yet investors remain confident in the Fed’s ability to fight inflation — at least according to measures such as long-term interest rates on US Treasuries and inflation