The Supreme Court appeared skeptical Wednesday of Donald Trump's firing of Federal Reserve Governor Lisa Cook. Justices across the political spectrum questioned the move's legality and potential impact on the Federal Reserve's independence. The case centers on Trump's August dismissal of Cook, whom he accused of mortgage fraud, allegations she denies.

Cook argued she was denied due process to refute the claims. Justice Kavanaugh, a Trump appointee, voiced concern about the administration's interpretation of the law. He warned it could "weaken, if not shatter, the independence of the Federal Reserve."

The law allows a president to remove Fed governors only "for cause." The court's hesitation suggests a possible setback for Trump. The immediate market impact remains to be seen, but analysts are watching closely for signals about the Fed's future autonomy.

The Federal Reserve, established to ensure economic stability, operates independently of direct political control. The court will likely issue a ruling in the coming weeks, setting a precedent for presidential power over the central bank.