The Big Take: Why Trump v. Cook Matters

Podcast: Big Take (Bloomberg & iHeartPodcasts)
Date: January 22, 2026
Host: Sarah Holder
Guests: Amera Amokwe (Bloomberg Federal Reserve reporter), Greg Storr (Bloomberg Supreme Court reporter)

Brief Overview

This episode of The Big Take delves into the Supreme Court case Trump v. Cook, a consequential legal battle centering on former President Donald Trump's unprecedented attempt to fire Lisa Cook, a sitting Federal Reserve governor. The discussion explores the core legal arguments, the potential consequences for U.S. monetary policy, Fed independence, market stability, and the broader context of presidential power. With expert guests who were present for the oral arguments, this episode provides listeners with a front-row look at a moment that could reshape the balance between politics and central banking in America.

Key Discussion Points & Insights

1. The Heart of the Case: Presidential Power vs. Fed Independence

• Background: President Trump, citing unproven allegations of mortgage fraud, attempted to fire Fed Governor Lisa Cook via a post on Truth Social. Cook has denied these allegations and filed suit, arguing her removal would cause “irreparable harm” to the U.S. economy. Lower courts sided with Cook, allowing her to remain on the job as her legal fight continues.
• Legal Stakes (05:05–06:29):
  • Is a sitting Fed governor entitled to due process before dismissal?
  • Does the president have the authority to remove a Fed governor for allegations not proven in court?
  • What would be the broader impact on the Fed’s independence and market stability?

2. Unprecedented Attention: Supreme Court and Public Interest

• Noteworthy Attendance (03:31–03:36):
  “Former Fed Chair Ben Bernanke was there. So was current chair Jerome Powell.” — Sarah Holder
• Significance: The Fed and markets are watching closely, as are prominent officials, underlining the high stakes.

3. Core Legal Arguments Presented

• Lisa Cook’s Side (09:06–09:58):
  • Lack of procedural fairness—no opportunity to respond or defend herself.
  • Independence of the Fed at risk if governors can be fired at will by the president.
  • Quote (09:42):
    “It's less important that the president have full faith in every single governor, and it's more important that the markets and the public have faith in the independence of the Fed from the president and from Congress.”
    — Paul Clement, Cook’s lawyer
• Trump Administration’s Side (10:26–11:42):
  • Presidential authority is paramount, Fed jobs serve at the pleasure of the president.
  • Claim that Cook’s alleged misconduct makes her unfit to set interest rates.
  • Quote (11:42):
    “The American people should not have their interest rates determined by someone who was, at best, grossly negligent in obtaining favorable interest rates for herself.”

4. Concerns Voiced by Justices and Observers

• Fed Independence and Precedent (12:42–13:27):
  Justice Kavanaugh questioned the Solicitor General on the risk of starting a cycle where each new president could replace Fed governors at will, eroding independence:
  • Quote (13:07):
    “If this were set as a precedent... what goes around comes around. All the current president's appointees would likely be removed for cause on January 20, 2029, if there's a Democratic president.”
• Potential Court Leanings (13:50–14:41):
  • The justices seemed uneasy with granting the president unchecked latitude to dismiss Fed officials, suggesting a preference for at least minimal procedural protection or a narrow ruling to delay rather than decide definitively.

5. Potential Outcomes and Broader Implications

• If Trump Wins (18:38–20:05):
  • Would set a precedent for presidents to fire central bank governors at will.
  • Likely to erode investor confidence and make the Fed more susceptible to political influence.
  • Quote (18:38):
    “When a central bank is independent, it provides for better economic outcomes ... If you have a less independent Fed, maybe you have an economy that is less strong ... it would have implications for the US Dollar, ... stocks, ... treasuries ... a downward spiral if we see Fed independence eroded.” — Amera Amokwe
• If Cook Wins (20:20–21:19):
  • Fed governance remains stable, with court reaffirming the current protections against arbitrary removal.
  • Presidential authority remains strong elsewhere, but not over Federal Reserve appointments.

6. The Political and Market Context

• Ongoing DOJ Probe (04:07, 21:32–22:46):
  A concurrent criminal investigation into the Fed is further fueling tensions, with some Republicans now expressing unease over the president's aggressive tactics.
• Near-Term Uncertainty:
  The Supreme Court’s decision is pending and will likely arrive before the end of June or early July (23:00), while the Fed faces complex economic data and leadership uncertainty as President Trump considers new nominees for Chair (23:14–24:25).
• Quote (21:32):
  “...We haven't really seen much market reaction to some of these attacks... But now with this DOJ investigation, we did see a few Republicans come out and say this is going a little too far. We kind of need to pull this back.” — Amera Amokwe

Notable Quotes & Memorable Moments

• Fed Independence in the Spotlight:
  “The fact that [Powell] showed up, I think did send a message about how important he sees it as being, especially after that rather extraordinary statement that he gave the other night about the criminal investigation involving him.” — Greg Storr (04:07)
• The Broader Precedent:
  “It's more important that the markets and the public have faith in the independence of the Fed...” — Paul Clement (09:42)
• Justice Kavanaugh’s Warning:
  “What goes around comes around. All the current president's appointees would likely be removed ... if there's a Democratic president.” (13:07)
• Why This Case Matters:
  “...if you have a less independent Fed ... perhaps they aren't going to be willing to take those unpopular steps when necessary. And then maybe you have an economy that is less strong.” — Amera Amokwe (18:38)

Timestamps for Important Segments

• 02:25: Introduction & summary of Trump’s firing attempt
• 03:14–03:36: High-level observers at the hearing (Bernanke, Powell)
• 05:05: Recap of legal proceedings so far
• 06:29: Key legal questions at stake
• 09:06–09:58: Lisa Cook’s legal argument and Fed independence
• 10:26–11:42: Trump admin’s argument and justices’ skepticism
• 12:34–13:27: Justice Kavanaugh’s question on precedent and Fed independence
• 13:50–14:41: Gret Storr on apparent disposition of the court
• 17:41–18:26: Recent Supreme Court precedent on removal power
• 18:38–20:05: Implications of eroded Fed independence
• 21:32–22:46: Political checks and DOJ investigation
• 23:00–23:14: Timing of Supreme Court decision
• 23:14–24:25: What’s next for the Fed and its leadership

Conclusion

This episode frames Trump v. Cook as a pivotal test of both presidential authority and the Federal Reserve’s independence. With legal, economic, and political ramifications at play, the outcome will shape not only the power dynamics within the U.S. government but also global confidence in America’s central bank. The Supreme Court is poised to make a historic decision, one that will be watched intently from Washington to Wall Street and beyond.