The Supreme Court has added another blockbuster case to its new term of cases. The court announced it would hear whether President Trump can legally fire Federal Reserve Governor Lisa Cook. Jessica Levinson has more.

Washington

The US Supreme Court has agreed to hear a case concerning President Trump's attempt to remove Federal Reserve Governor Lisa Cook. The central issue is whether the president can dismiss a Fed governor 'for cause' based on alleged actions that occurred before the official took office, such as mortgage fraud, or if 'for cause' only applies to conduct during the term of service.

The case raises questions about the balance of power between the executive branch and the independence of the Federal Reserve. The court will interpret the relevant statute, which aims to protect Fed governors from undue presidential influence, and determine the extent of the president's authority in such removals. The Supreme Court's decision is expected to clarify the legal boundaries of executive power in this context.

Supreme Court to weigh Trump firing of Fed's Lisa Cook

The Supreme Court has added another case to its new term, which starts Monday. The court announced today it would hear whether President Trump can legally fire Federal Reserve Governor Lisa Cook. It is just one of the court's highly anticipated cases. And joining me now is CBS News legal contributor Jessica Levinson. Jessica, good to be with you again. Walk us through what was decided on Cook and then what the court's ultimately going to have to decide. What was decided is not that much, meaning essentially we're going to wait until the Supreme Court takes this case up in January. For now, she keeps her job. But what's going to happen in January is we're going to have a big discussion about whether or not that federal statute that says somebody in Lisa Cook's position can only be removed for cause. What exactly does for cause mean? And specifically in this case, does it include activities that are alleged to have occurred here, mortgage fraud, before somebody takes office, before they get into one of these positions? Or does for cause really only mean actions that you take once you are in office? So that's going to be one of the big does the president have the power and when cases, John, that we're going to hear this term. In that case, though, is it a question of presidential authority or is it a case of statutory interpretation? I love this question. Or a little bit of both in the sense that the president is saying, basically, I get to determine what for cause is. I get to determine what this statutory requirement means. And he's asking that the court really only very lightly review that decision, if at all. But yes, it comes down to this statute, which is designed to allow members of the board of governors for the Fed to have some independence, to not be entirely beholden to the president. That's also why they have staggered terms. It's designed to give some independence, but it's not defined in the rest of the statute. So it's a little statutory interpretation, a little does the president have the power. OK, now a curveball. There's another, the court's also going to take up a tariff case. Is that related similarly? In other words, the president is claiming an authority from a piece of legislation. And so is that also the tariff case, one of both executive power and legislative interpretation? Yes. OK, that was a, I'm not a sports person, fastball. It wasn't a curve. This is exactly right in the sense that it's asking basically the same questions. So for the tariff case, we're looking at a different statute, obviously, the IEEPA. And we're trying to figure out whether or not when Congress passed that statute, they wanted to give the president the power to impose these reciprocal tariffs. And so here again, we're looking at the statutory language, and it's a question of what does the statute mean? And therefore, how much power does a president have? Again, it's the same setup. The president is saying here, I have the power and courts don't second guess me on this one. 35 seconds. Tell me about the Voting Rights Act case they're likely to bring up. Big Voting Rights Act case. It's coming back to the court and it fundamentally brings up this tension of what happens if you draw district lines to comply with the Voting Rights Act? Does that mean that you're considering race so much that it might actually violate the 14th Amendment Equal Protection Clause?

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