Why older workers are taking more entry-level jobs
episodePreviously titled “Why the Fed’s future rests on this Supreme Court case” — renamed by the publisher on Aug 2, 2026
Transcript
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What Supreme Court case is affecting the Federal Reserve's future?
Good morning. Jerome Powell is at the Supreme Court today as his colleague challenges White House attempts to fire her. The Associated Press explains how it could decide his fate, too. In Texas, a reporter with The Wall Street Journal takes us inside the courtroom for the case of the police officer accused of failing to act during the Uvalde school shooting. And in Davos, a frosty reception for Trump.
We do prefer respect to bullies, and we do prefer rule of law to brutality.
It's Wednesday, January 21st. I'm Shemita Basu. This is Apple News Today. Today, Jerome Powell will watch on as the Supreme Court considers President Trump's attempted firing of Fed Governor Lisa Cook. The case centers on a concept laid out in the Federal Reserve Act, which says that Fed board governors can only be fired for cause. Chris Rugeber is an economics writer with the Associated Press who explained how this has allowed the agency to retain its independence.
The idea behind the Fed is that it has some insulation, not complete insulation, but some insulation from political pressure. So it can do unpopular things like raise interest rates in order to push back on inflation, which most elected officials don't want to do because higher interest rates makes mortgages more expensive, car loans more expensive. And so it's hard for anyone who's facing election to want to do that.
How does the case against the Uvalde police officer unfold?
The Trump administration has accused Cook of mortgage fraud and argued in court filings that that's a legitimate reason to remove her from her post. Cook and her attorneys deny that accusation and say that she was not afforded due process.
This is an unprecedented move by President Trump to remove a Fed governor. It's not happened in the Fed's 112-year history. So the argument is that the court should maintain the status quo while this case then plays out in the courts.
If the court rules against Cook, it could signal an opening for Trump to remove the Fed chair as well. Powell recently hit back against a threatened criminal indictment from the Trump administration relating to comments he made in Congress about renovations to Fed buildings.
You're seeing a sign of what the Trump administration might do if they are able to remove people for cause. They would then maybe use this building renovation. They would remove the chair and they would possibly find reasons to fire other people. Some analysts say that the move against Powell made it more likely that Cook would win her case, at least temporarily, because, again, it shows how far things might go if you allow the Trump administration to remove people for cause.
Treasury Secretary Scott Besant said yesterday that he didn't think it was right for Powell to be attending the Supreme Court arguments. He spoke with CNBC from Davos.
I actually think that's a mistake, because if you're trying not to politicize the Fed, for the Fed chair to be sitting there trying to put his thumb on the scale is a real mistake.
Powell has previously said that the Fed will not get involved in commenting and will abide by whatever the court decides. While his term as chair is set to end in May, Rugeber pointed out an interesting wrinkle that could impact the future of the Fed's relationship with the White House.
There's a separate term he has as a governor, a member of the seven-member governing board, and that goes until 2028, January 2028. He could remain on the board for that time, and then that would deny the Trump administration an opportunity to fill the seat. Most people expected that he was going to step down until this subpoena came out a little more than a week ago. Now the expectation, I mean, no one knows, but now it's seen as at least somewhat more likely that he may stay on the board.
Decision in the Cook case is expected by this summer. Today in Uvalde, Texas, an extraordinary trial is entering its final stages to decide whether a single police officer can be prosecuted for how they responded to a school shooting. Back in 2022, an 18-year-old gunman arrived at Robb Elementary School and opened fire, killing two teachers and 19 fourth graders.
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Chapters
5 chapters
1
What Supreme Court case is affecting the Federal Reserve's future?
0:05–1:32
2
How does the case against the Uvalde police officer unfold?
1:32–5:24
3
What challenges is Gen Z facing in the job market?
5:24–6:39
4
How does the Fed maintain its independence from political pressure?
6:39–12:26
5
What are the implications of Trump's actions on the Federal Reserve?
12:26–14:28
Speakers
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