Federal Reserve Chair Jerome Powell says that a sharp slowdown in hiring poses a growing risk to the U.S. economy. Powell's comments Tuesday suggest that the Fed will likely cut its key interest rate twice more this year. Powell said in written remarks that despite the federal government shutdown cutting off official economic data, "the outlook for employment and inflation does not appear to have changed much since our September meeting," when the Fed reduced its key rate for the first time this year.

The Supreme Court is allowing Lisa Cook to remain as a Federal Reserve governor for now. The court is declining to act on the Trump administration's effort to immediately remove her. In a brief unsigned order Wednesday, the high court said it would hear arguments in January over President Donald Trump's effort to force Cook off the Fed board. The White House said it looks forward to "ultimate victory" after presenting those oral arguments. Cook's lawyers praised the court for "rightly" letting her stay in her job. The justices will consider whether to block a lower-court ruling in Cook's favor while her challenge to her firing by Trump continues.

Federal Reserve Governor Lisa Cook is suing the Trump administration in an effort to overturn the president's attempt to fire her, launching an unprecedented legal battle that could significantly reshape the Fed's longstanding political independence. No president has sought to fire a Fed governor in the institution's 112-year history until President Donald Trump posted a letter on his Truth Social media platform late Monday saying that Cook was fired. Trump said the reason for her removal were allegations that she committed mortgage fraud in 2021, before she was appointed to the board.

Federal Reserve Gov. Lisa Cook's lawyer says she'll sue President Donald Trump's administration to try to prevent him from firing her. Longtime Washington attorney Abbe Lowell said Tuesday that Trump "has no authority to remove" Cook. If Trump succeeds in removing Cook from the Fed's board of governors, it could erode the Fed's political independence, which is considered critical to its ability to fight inflation because it enables the Fed to take unpopular steps like raising interest rates. The Republican president said Monday he was removing Cook because of allegations she committed mortgage fraud. Cook was appointed by Democratic President Joe Biden in 2022.

Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy. In a high-profile speech closely watched at the White House and on Wall Street, Powell said that there are risks of both rising unemployment and stubbornly higher inflation. Yet he suggested that with hiring sluggish, the job market could weaken further.

Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged. According to the minutes of the July 29-30 meeting, released Wednesday, members of the Fed's interest-rate setting committee "assessed that the effects of higher tariffs had become more apparent in the prices of some goods but that their overall effects on economic activity and inflation remained to be seen." The minutes underscored the reluctance among the majority of the Fed's 19 policymakers to reduce the central bank's short-term interest rate.