"New Federal Reserve News Agency": What does the investigation of Powell mean for the case of Governor Cook?

On Wednesday, renowned financial journalist Nick Timiraos, known as the "New Federal Reserve Correspondent," wrote that the U.S. Department of Justice's investigation into Federal Reserve Chairman Jerome Powell is not directly related in form to the Trump administration's attempt to remove Federal Reserve Governor Lisa Cook, and it was not directly mentioned during Cook's hearing on Wednesday. However, this investigation may have become the most favorable factor in defending Cook. During the court hearing on Wednesday, the justices were asked to rule on a relatively narrow issue: whether allegations of mortgage fraud constitute just cause for the removal of a Federal Reserve governor. However, the case is placed in a distinctly different context due to the U.S. Department of Justice conducting a criminal investigation into Powell's testimony last summer regarding the renovation of the Federal Reserve's office building. Cook's lawyers have consistently argued that the allegations regarding her mortgage documents are merely a pretext to conveniently remove a Federal Reserve governor appointed by Biden without admitting that the real reason is policy disagreement. They believe that the government is packaging a politically motivated dismissal as a "just cause removal" because it understands that the Supreme Court may not tolerate the president's blatant assertion of power over the central bank. Timiraos cited analysts who said that this argument became more plausible after Powell released a shocking video statement on January 11. In the statement, Powell disclosed that the U.S. Department of Justice is conducting a criminal investigation into the Federal Reserve and dismissed it as an excuse aimed at forcing the Federal Reserve to lower interest rates at Trump's request. The Trump administration denies that the investigation is related to the Federal Reserve's interest rate decisions. However, the pattern of coercion using excuses, as alleged by Cook's lawyers, now seems to have another potential corroboration, and this atmosphere also enveloped the court hearing debate on Wednesday. Timiraos quoted Boston University School of Law professor Jed Shugerman, stating that Cook's lawyer Paul Clement "very cleverly did not make the Powell investigation the opening focus." But as the oral arguments neared their conclusion, "he ensured that everyone present understood the larger context in a subtle yet effective manner." On Wednesday, Powell made a rare appearance at the U.S. Supreme Court for the oral arguments regarding the case of Federal Reserve Governor Cook