Fed Holds Rates as Powell Defends Independence, Dodges Questions on Cook Case and DOJ Probe

Overview

• The Federal Reserve kept the benchmark interest rate unchanged at 3.50%–3.75% before Powell’s press conference.
• Powell refused to address questions on Lisa Cook’s Supreme Court case and the DOJ investigation into him, pointing reporters to a Jan. 11 statement.
• He said he does not plan to remain on the Fed Board after his term as chair ends in May.
• Powell attended Cook’s Jan. 21 Supreme Court hearing, a move criticized as political by Treasury Secretary Scott Bessent.
• The legal dispute stems from President Donald Trump’s attempt to remove Cook over alleged mortgage fraud, which she is contesting under the statute’s “for cause” removal standard.