U.S. Supreme Court hears arguments in Trump v. Cook

WASHINGTON (CBS, KYMA) - The Supreme Court is hearing oral arguments Wednesday in a high-stakes case that could have a major impact on the independence of the Federal Reserve.

At issue is the legality of President Donald Trump's attempt to fire Lisa Cook from her post on the Fed's Board of Governors.

The president maintains he had cause to fire her because of allegations of mortgage fraud in 2021, before her appointment.

The justices questioned the evidence behind the allegations, and whether Cook was allowed to respond.

When asked if Cook was given the opportunity of some sort of formal proceeding to contest the evidence or explain it, Solicitor General D. John Sauer said, "Not a formal proceeding. She was given an opportunity in public."

This is the first time in the Fed's 112-year history that a president has tried to fire a sitting governor. It comes at a time when President Trump has repeatedly slammed the Fed for its interest rate policy.