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Real-time News
1. Judges Attitude: A majority of Supreme Court justices were cautious about the governments arguments, believing that President Trumps firing of Federal Reserve Governor Cook could undermine the Feds independence and disrupt markets. 2. Court Duty: Conservative Chief Justice Roberts expressed unease about the notion that judges have no power to review presidential dismissal decisions, especially given that officials are protected under "justified" dismissal protections. 3. Procedural Criteria: Before proceeding to the discussion of the grounds for dismissal, Deputy Attorney General Sauls assertion that "Trumps social media posts can be considered formal notification" was challenged. Trumps appointee, conservative Justice Barrett, questioned why it was so difficult to give Cook an opportunity to present himself in person. 4. Definition of Grounds: The justices were cautious in defining clear boundaries for "justifiable grounds" for dismissing a Federal Reserve governor. They noted that Federal Reserve regulations do not, like other laws, specify concrete grounds for dismissal such as "inefficiency," "negligence," and "malfeasance." 5. Economic Concerns: Trumps conservative Supreme Court nominee, Kavanaugh, warned that the governments stance could "crush" the Federal Reserves independence and have long-term consequences, putting Deputy Attorney General Saul on the defensive. The justices are still weighing the limits. Cooks lawyer, Clement, emphasized that the key is to avoid giving the market the impression that the interest rate cuts are driven by political pressure. 6. Political Risks: Kavanaugh also worries that a ruling in favor of the government could set a precedent, allowing future presidents to arbitrarily find reasons to fire former Federal Reserve officials.The Dow Jones Industrial Average rose 588.64 points, or 1.21%, to close at 49,077.23 on Wednesday, January 21; the S&P 500 rose 78.76 points, or 1.16%, to close at 6,875.62; and the Nasdaq Composite rose 270.50 points, or 1.18%, to close at 23,224.82.US President Trump: Venezuelan oil will be sold at market price, with a portion retained.US President Trump: Powell will not have an easy time if he does not leave the Federal Reserve (i.e., continue to serve as a Federal Reserve Governor after stepping down as chairman).US President Trump: Rick Riddell, BlackRock’s global chief fixed income investment officer, and Kevin Warsh, former Federal Reserve governor, are both suitable to serve as the next Federal Reserve chairman.
