Bessent Urges Powell to Skip Supreme Court Hearing He Attended

Treasury Secretary Scott Bessent recently expressed disapproval of Federal Reserve Chair Jerome H. Powell attending Supreme Court oral arguments. The arguments address whether President Trump can remove Lisa D. Cook from her position as a Fed governor.

Bessent Urges Powell to Skip Supreme Court Hearing

Speaking at the World Economic Forum in Davos, Switzerland, Bessent warned that Powell’s presence could politicize the Federal Reserve. He emphasized the importance of maintaining the Fed’s independence, stating that for its chair to be present at such arguments is a significant miscalculation.

Context of the Court Case

The Supreme Court is currently considering Trump’s authority over the Federal Reserve and its members. Bessent remarked that having Powell in attendance at the hearing could appear as though he is trying to influence the proceedings.

• Powell and the Federal Reserve are co-defendants in the case.
• Paul A. Volcker, a former Fed chair, had previously attended a Supreme Court case in 1985.
• Bessent attended a Supreme Court argument regarding Trump’s tariff powers in November.

Concerns Over Tariff Powers

Both Bessent and Trump have indicated that the court’s decision regarding tariff enforcement will critically impact the administration’s economic policies. They warn that a ruling against them could force the government to return billions in tariff revenue, complicating trade negotiations.

Accountability and Ongoing Investigations

In a recent interview, Bessent acknowledged the ongoing criminal investigation into Powell and Trump’s attempts to dismiss Cook. He reinforced that accountability is necessary in light of these developments.

Lisa D. Cook, appointed as a Fed governor in 2022, has filed a lawsuit against Trump after attempts to oust her. She contends that the law permits presidential dismissals only “for cause.” Although accused of mortgage fraud related to prior loan documents, she denies any wrongdoing and has yet to face charges.

Supreme Court Decision Pending

The Supreme Court’s ruling on Cook’s employment status is anticipated, following an October decision that allowed her to remain in her role during the litigation process. Bessent’s comments highlight a critical juncture for the Federal Reserve and its leadership.