Banking with Interest 'All Hell Might Break Loose': The High Stakes for the Fed's Future
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Jan 27, 2026 
Victoria Guida, Politico economics correspondent who covers the Fed and financial regulation. She walks through the Supreme Court clash over Fed removals and the legal fight around Lisa Cook. She explores the DOJ probe into Jerome Powell and how political pressure could reshape Fed leadership and market confidence.
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Court Questions Rush And Fed Independence
- The Supreme Court seemed skeptical of the administration's rush to fire Lisa Cook without thoroughly examining the underlying allegations.
- Justices questioned whether expedited removal harms the principle of Fed independence and if "for cause" needs judicial definition.
For-Cause Standard Could Be Eroded
- Justices worried that a broad presidential discretion to fire Fed governors could render "for cause" meaningless and turn appointments into at-will employment.
- Several justices emphasized protecting Fed independence and weighing market and public interest consequences.
Cook Learned Of Firing By Social Post
- Lisa Cook reportedly learned about her attempted firing via a Truth Social tweet while possibly on a plane en route to Jackson Hole.
- The abrupt public notice and delayed DOJ rebuttal made the case feel procedurally irregular.