Cook Supreme Court Case Could Challenge 'Fundamental Bedrock' of Economy, Says Brainard

Описание: Former Federal Reserve Vice Chair Lael Brainard said the move to criminally investigate Fed Chair Jerome Powell was a "spectacular misstep" by the Trump administration has set off alarm bells in markets and in Congress. Brainard also discussed future of fed independence as the Supreme Court heard arguments in the case of the firing of Fed governor Lisa Cook. Brainard said that the case is crucial to maintaining a 'fundamental bedrock of the American economic dynamism.'  

US Supreme Court justices suggested they are wary of President Donald Trump’s effort to fire Federal Reserve Governor Lisa Cook over unproven mortgage-fraud allegations, saying the move could upend the Fed’s independence and rattle markets.
Hearing arguments in Washington Wednesday, conservative and liberal justices alike sharply questioned US Solicitor General D. John Sauer, who urged the court to let Trump oust Cook for the time being while her lawsuit goes forward.
Trump’s own appointees were among the skeptics. Justice Brett Kavanaugh said the president’s position would “weaken if not shatter the independence of the Federal Reserve.” Justice Amy Coney Barrett asked whether the risk to financial markets was reason for “caution on our part,” though she also suggested she wasn’t ready to fully embrace Cook’s position.
The case is testing the Supreme Court’s commitment to the independence of the central bank. The court so far has helped shield the Fed from Trump’s efforts to seize control, but the Cook case presents a new set of legal issues. 
The stakes for the US and world economies are massive, as underscored by a bipartisan group of former Treasury secretaries, Federal Reserve chairs and other experts. They filed a brief saying a decision for Trump would undermine public confidence in the Fed and jeopardize its ability to effectively set monetary policy. The court is set to rule by July.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
WATCH HERE: http://bit.ly/3vTiACF

Follow us on X:   / bloombergradio  

Subscribe to our Podcasts:

Bloomberg Daybreak: http://bit.ly/3DWYoAN
Bloomberg Surveillance: http://bit.ly/3OPtReI
Bloomberg Intelligence: http://bit.ly/3YrBfOi
Balance of Power: http://bit.ly/3OO8eLC
Bloomberg Businessweek: http://bit.ly/3IPl60i

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay: https://apple.co/486mghI
Android Auto: https://bit.ly/49benZy

Visit our YouTube channels:
Bloomberg Podcasts:    / bloombergpodcasts  
Bloomberg Television:    / @markets  
Bloomberg Originals:    / bloomberg  
Quicktake:    / @bloombergquicktake