Marketplace Morning Report Fed independence goes before the Supreme Court
Jan 20, 2026
Sarah Binder, a senior fellow at the Brookings Institution and a political science professor at George Washington University, shares insights on a pivotal Supreme Court case regarding the potential removal of Federal Reserve Governor Lisa Cook. She discusses the implications of this case for Fed independence, warning that allowing political motivations could undermine market confidence. Binder also clarifies that the court's focus is on the procedural aspects of removal, rather than the allegations against Cook, highlighting the unique position of the Fed in this legal landscape.
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Small Affordability Gains Expected In 2026
- Zillow expects modest affordability gains in 2026 driven by incomes, lower mortgage rates, and flat prices.
- Median-income buyers now spend about a third of income on mortgage payments, the best level since August 2022.
Monitor Rates And Inventory Closely
- Watch mortgage interest rates and housing inventory because both can quickly change affordability.
- If rates fall further or more homes list, prices could drop and improve buyers' ability to stay under 30% of income on payments.
Court Case Could Reshape Fed Independence
- The Supreme Court will decide whether the president can remove a Fed governor while legal proceedings continue.
- That narrow legal question could reshape Fed independence and market confidence in anti-inflation commitments.