Lisa Cook lawsuit is 'the most important legal case' in Fed history, Powell says
Source: Politico
01/28/2026 05:13 PM EST
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.
Read more: https://www.politico.com/news/2026/01/28/powell-lisa-cook-lawsuit-is-the-most-important-legal-case-in-the-feds-history-00753346
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before the "whining" finally kicked in and the fed held rates steady for a bit. But then not long after when COVID hit, they came crashing back down to near 0 (~0.25%). Those downward "crashes" corresponded to recessions (either ongoing or about to kick off).
