Squawk on the Street SOTS 2nd Hour: Fed Gov. Lisa Cook’s Case Heads To Court – Latest Analysis, Plus: Affirm & Celsius CEOs 8/29/25
Aug 29, 2025
Max Levchin, the innovative founder and CEO of Affirm, joins the discussion on current consumer trends. He explains how Affirm's performance reflects the state of consumer sentiment in light of recent economic data. The conversation delves into the impact of inflation expectations and upcoming tariffs on spending behaviors. Levchin emphasizes the importance of transparency in financial products and the evolving landscape of lending. Additionally, he touches on strategic moves within the corporate sector, including Affirm's strong earnings amid market fluctuations.
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'Cause' Is The Legal Flashpoint
- The court fight centers on what legally constitutes "cause" for removing a Fed governor and whether a temporary restraining order is warranted.
- The outcome could pause removal while the lawsuit proceeds, potentially lasting weeks or months.
Fed Independence Versus Executive Power
- The case raises core questions about Fed independence versus executive removal powers.
- What the president frames as authority to remove for cause could reshape how monetary policy decisions are insulated from politics.
Frame Due Process Early
- Lawyers should expect courts to treat due process for principal officers similarly to regular employees when cause is alleged.
- Prepare procedural defenses addressing timing and pre-office conduct rather than just policy disputes.