Federal Reserve Chair Jerome Powell explained his attendance at Fed Governor Lisa Cook’s Supreme Court hearing, calling it the most important legal case in Fed history. Powell noted former Chair Paul Volcker attended a Supreme Court case in the past, showing precedent for his attendance. Justices expressed skepticism of Trump’s claims about removing Cook during the hearing.

The Federal Reserve, established in 1913, is facing challenges to its apolitical stance as Powell faces a federal probe over headquarters renovations and Cook’s potential removal by Trump. Powell emphasized the importance of the Fed’s political separation for credibility. There are concerns that the Fed’s apolitical stance may be at risk due to these developments.

Powell’s term as Federal Reserve Chair ends in May, with Trump having the authority to announce a successor at any time. Powell advised future chairs to avoid getting involved in elected politics to maintain the institution’s credibility. Powell emphasized the importance of the Fed’s independence in maintaining credibility and trust in the institution.

Read more at CNBC: Powell says Cook Supreme Court case is the most important in the Fed’s 113-year history