Lisa Cook Lawsuit Is ‘the Most Important Legal Case’ In Fed History, Powell Says

Federal Reserve Chair Jerome Powell on Wednesday said the Supreme Court’s deliberations over whether President Donald Trump can fire his colleague, Lisa Cook, might be the most consequential lawsuit in the central bank’s history.

Powell, speaking to reporters after the Fed held interest rates steady, defended his decision to attend the oral arguments in the case, following remarks by Treasury Secretary Scott Bessent, who suggested it would be a “real mistake” and a political move to do so.

“I don’t respond to comments by other officials, whoever they may be,” the Fed chief said. “It is just not appropriate to do that.”

But he cited a precedent: Then-Fed Chair Paul Volcker was present at the Supreme Court during a case in 1985.

He also said it would have been harder for him to explain why he didn’t attend because the case is so consequential.

“I would say that case is perhaps the most important legal case in the Fed’s 113-year history,” Powell added.

The comments mark the first time that he has substantively weighed in on Trump’s bid to fire Cook, whom the president has accused of criminal mortgage fraud, though the underlying facts of the case are not established. The ruling could set a precedent on the circumstances under which a Fed board member can be fired, which is legally allowed when there is “cause.”

The remarks also came after the Fed chief earlier this month accused the administration of issuing subpoenas to the central bank as a means of pressuring him to lower interest rates — the first time he has directly struck back at Trump's attacks on him.

But Powell otherwise largely avoided questions related to politics or the administration during the press conference.

“I will simply refer you to the statement I made on Jan. 11,” he said. “I am not going to expand on it or repeat it.”

When prompted, though, he did offer some advice for his yet-to-be-named successor: “Stay out of elected politics,” he said. “Don’t get pulled into elected politics. Don’t do it.”

He also said the Fed’s obligation to keep Congress informed was “not a passive burden.”