Supreme Court decision on Lisa Cook firing bid and ECB forum set to test Fed Chair Kevin Warsh’s opening weeks

The U.S. Supreme Court is expected to rule this week on President Donald Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook, a case that for the first time tests the legal limits of the Federal Reserve Act’s “for cause” removal standard. Lower courts have already paused the dismissal, allowing Cook to remain in her role while the case proceeds. If the court upholds strong tenure protection for Fed governors, it would reinforce the Fed’s policy independence and reduce the risk of political pressure on rate decisions. With inflation running hotter than expected and markets weighing the possibility of rate hikes, the ruling could shape policy credibility and how investors price the interest-rate path.