The Fed's Independence Goes to Trial

What Happened

In a historic constitutional clash over presidential power and central bank independence, the Supreme Court heard oral arguments on whether a sitting president can fire a Federal Reserve governor.

President Trump tried to remove Federal Reserve Governor Lisa Cook in August over mortgage fraud allegations she denies and for which she faces no charges. Lower courts blocked the removal, allowing Cook to remain in her position while the case proceeds. This marks the first time in the Federal Reserve’s 112-year history that a sitting president has attempted to fire a governor.

Federal Reserve Chair Jerome Powell attended the oral arguments in a rare public appearance. His presence signals strong institutional support for Cook and reflects his own escalating conflict with the administration.

In a related development, the Justice Department has served the Fed with grand jury subpoenas and threatened criminal indictment against Powell tied to his Senate testimony regarding Federal Reserve building renovations.

Powell has described the probe as a pretext. He stated that the threat of criminal charges stems from the Fed setting interest rates based on economic assessment rather than presidential preference.

Why It Matters

This Supreme Court case carries profound implications for American economic governance and the separation of powers between the executive branch and independent agencies.

If the president succeeds in removing Cook and appointing a replacement, presidential appointees would hold a majority on the Fed’s seven-member Board of Governors. That shift would redirect monetary policy toward White House priorities rather than economic fundamentals.

Global Ad Giants Are Buying the Pipes — This One’s Still Private

Global ad agencies are racing to buy the infrastructure — the data “pipes” and decision layers that control reach, relevance, and ROI. The consolidation wave is accelerating, and the smartest money is moving upstream.

RAD Intel already built that infrastructure, with a 14-year head start in AI. Its platform helps Fortune 1000 brands reach real customers with precision and speed. Fast Company calls RAD Intel “a groundbreaking step for the Creator Economy,” and recurring seven-figure contracts prove it’s working.

With $60M+ raised from 14,000+ investors, valuation up 5,000%+ in four years*, and sales contracts more than doubling in 2025, RAD Intel is scaling fast. Backed by Adobe, multiple Fidelity funds, and insiders from Google, Meta, and Amazon, the company has secured its Nasdaq ticker ($RADI) and positioned itself squarely in the path of the M&A surge.

Own shares at just $0.85 — this one’s still private.

👉 Lock in $0.85/share today

Federal law currently states that Fed governors may only be removed for cause. This requires evidence of misconduct or dereliction of duty. A ruling favoring expanded presidential power could extend beyond the Federal Reserve to other independent agencies, including the Securities and Exchange Commission and the Federal Trade Commission.

Central bank independence is widely viewed by economists as essential for controlling inflation and maintaining stable prices over time. Historically, political interference in monetary policy has led to higher inflation as elected officials favor lower interest rates to boost short-term growth. Countries with politically controlled central banks typically experience greater economic volatility and higher borrowing costs.

International markets are watching the case closely. Any erosion of Fed independence could undermine confidence in U.S. Treasury bonds and weaken the dollar’s role as the world’s reserve currency.

How It Affects You

If political influence over the Federal Reserve increases, interest rate decisions may become more responsive to election cycles than to economic conditions. That could lead to lower short term rates and potentially reduce mortgage costs.

Stock markets generally react negatively to threats against central bank independence. Predictable monetary policy is critical for business planning and investment decisions. If the Fed’s credibility weakens, volatility could increase in retirement accounts and investment portfolios.

The prices you face at the grocery store, gas pump, and in rent or mortgage payments depend heavily on the Fed’s ability to make difficult decisions. Independent central banks can raise interest rates to fight inflation even when those moves are unpopular and slow economic growth.

A politicized Fed may hesitate to act when inflation rises. Over time, that hesitation could allow prices to accelerate and erode purchasing power. The Court’s ruling will determine whether the Federal Reserve remains focused on long term economic stability or becomes subject to political pressure and partisan priorities.

*Disclaimer: This is a paid advertisement for RAD Intel made pursuant to Regulation A+ offering and involves risk, including the possible loss of principal. The valuation is set by the Company and there is currently no public market for the Company's Common Stock. Nasdaq ticker “RADI” has been reserved by RAD Intel and any potential listing is subject to future regulatory approval and market conditions. Brand references reflect factual platform use, not endorsement. Investor references reflect factual individual or institutional participation and do not imply endorsement or sponsorship by the referenced companies. Please read the offering circular and related risks at invest.radintel.ai.