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The Supreme Court on Wednesday appeared hesitant to grant President Donald Trump's attempt to oust Biden-appointed Federal Reserve board member Lisa Cook.

The justices heard <a href="https://www.supremecourt.gov/oral_arguments/live.aspx">oral arguments</a> for two hours in the <a href="https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/25a312.html">high-profile case</a> that tests Trump's view of expansive view of presidential powers. Trump had publicly pushed Cook to resign over mortgage fraud allegations. Cook has denied the accusations, claiming that she was being targeted over their monetary differences.

Cook was <a href="https://www.federalreserve.gov/aboutthefed/bios/board/cook.htm">first appointed in 2022</a> as the first black woman to serve in the post. As one of the board's governors, she helps set U.S. monetary policy.

U.S. Solicitor General D. John Sauer told the court that the allegations against Cook have tainted her fitness and competence to serve on the Fed. The allegations require her "immediate removal," Sauer told the justices.

"The American people should not have their interest rates determined by someone who was, at best, grossly negligent in obtaining favorable interest rates for herself," Sauer said. "Deceit or gross negligence by a financial regulator in financial transactions is cause for removal."

According to Paul Clement, the lawyer arguing for Cook, the allegations against her come from an "inadvertent mistake" on a mortgage application for a vacation property. Sauer, however, told the court that it would have been "quite a big mistake," and Chief Justice John Roberts indicated that the issue could be further debated.

In citing the <a href="https://www.federalreserve.gov/aboutthefed/fract.htm">Federal Reserve Act</a>, Clement told justices that Trump is trying to change protections for Fed governors into "at-will employment" instead. Under the law, a president can only remove Fed governors "for cause," but doesn't define the time or outline any removal procedures.

"There's no rational reason to go through all the trouble of creating ‍this unique, quasi-private entity that is exempt from everything from the [congressional] appropriations process to the civil service laws, just to give it a removal restriction that is as toothless as the president imagines," Clement said.

Liberal Justice Ketanji Brown pressed the solicitor general to reconcile those protections with his claim the president has broad discretion to remove a Fed governor.

Conservative Justice Amy Coney Barrett also pointed out that Cook was never given the chance to formally defend herself against the allegations.

The Fed has long been considered an independent body typically free from political influence. No U.S president has ever tried to oust a sitting Fed official until now.

In September, U.S. District Judge Jia Cobb ruled that Trump's efforts to remove Cook without notice or a hearing likely violated her constitutional right to due process. Cobb also said the alleged conduct happened before she served in the Fed post and is therefore considered legally insufficient.

Trump's request to put Cobb's ruling on hold was declined by the U.S. Court of Appeals for the District of Columbia Circuit.

<em>Reuters contributed to this report.</em>

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