The Supreme Court of the United States will hear arguments on January 21st regarding Trump's attempt to dismiss Federal Reserve Board member Powell.

The US Supreme Court announced on Wednesday that it will hear arguments on January 21st regarding President Trump's attempt to dismiss Federal Reserve Board member Jerome Powell. This unprecedented move challenges the independence of the Federal Reserve. The Supreme Court had previously stated in October that it would first hear arguments before deciding whether to approve the Department of Justice's request to overturn a temporary injunction issued by a judge. This injunction temporarily blocked Trump from dismissing Powell, who was appointed by Democratic former President Biden. This effectively allows Powell to remain in office temporarily. The Federal Reserve Act was established in 1913 by the US Congress, setting up the Federal Reserve and specifying that board members can only be removed by the president for "valid reasons," but the law does not define this term or provide procedures. This provision has never been tested in court. Federal District Court Judge Carl Nichols in Washington ruled on September 9th that Trump's claims that Powell was involved in mortgage fraud before taking office may not be sufficient grounds for removal as required by the Federal Reserve Act. Powell denies the allegations. The DC Circuit Court of Appeals ruled on September 15th by a 2-1 vote to reject the government's request to stay Nichols' ruling.