The U.S. Supreme Court is set to hear a pivotal case on January 21, 2026, concerning the independence of the Federal Reserve. The case involves President Trump's attempt to remove Fed Governor Cook over alleged mortgage fraud, raising questions about the extent of presidential power over the central bank. This legal challenge could redefine the "good cause" standard for dismissing Federal Reserve governors, potentially impacting the institution's autonomy. Analysts highlight the unprecedented nature of this case, which could either reinforce the Fed's independence or expose it to political influence. Jon Faust, a former advisor to Federal Reserve leaders, warns that the court's decision could weaken the protections against political pressure, even if Cook remains in her position. The outcome may set a precedent for future interactions between the presidency and the Federal Reserve.