Fed Chair Jerome Powell Confronts Trump in Supreme Court Lisa Cook Firing Lawsuit

The gloves are off in the battle for the soul of the Federal Reserve. Jerome Powell, Chair of the United States Federal Reserve, is taking an unprecedented step by attending the Supreme Court's oral argument involving the attempted firing of Fed Governor Lisa Cook. This move signals a shift from a subdued response to an open public confrontation with President Donald Trump.

The Jerome Powell Lisa Cook Firing Lawsuit and Institutional Integrity

According to a person familiar with the matter, Powell plans to attend the high court’s session this Wednesday, January 21, 2026. The case centers on whether President Trump has the authority to fire Cook, an appointee he has targeted since late August. While the administration has accused Cook of mortgage fraud, she has denied the allegations, and no formal charges have been filed.

The pressure on the Fed has escalated recently. Last week, Powell revealed that the Trump administration sent subpoenas to the central bank, threatening a criminal indictment against him. In a defiant video statement released on January 11, Powell condemned these actions as mere pretexts to force a sharp cut in interest rates.

Clash Over Interest Rates and Fed Control

At the heart of the conflict is a disagreement over monetary policy. Under Powell, the Fed lowered rates to roughly 3.6 percent late last year. However, Trump has publicly demanded a reduction to 1 percent, a move that most economists view as reckless. If the President succeeds in removing Cook, he could appoint a loyalist, potentially granting him a majority on the governing board and direct influence over the nation's economic levers.