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AP Source: Fed Chair Powell to attend Supreme Court argument on Cook case

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell will attend the Supreme Court’s oral argument Wednesday in a case involving the attempted firing of Fed governor Lisa Cook, an unusual show of support by the central bank chair.

The high court is considering whether President Donald Trump can fire Cook, as he said he would do in late August, in an unprecedented attempt to remove one of the seven members of the Fed’s governing board. Powell plans to attend the high court’s Wednesday session, according to a person familiar with the matter, who spoke on condition of anonymity.

It’s a much more public show of support than the Fed chair has previously shown Cook. But it follows Powell’s announcement last week that the Trump administration has sent subpoenas to the Fed, threatening an unprecedented criminal indictment of the Fed Chair. Powell — appointed to the position by Trump in 2018 — appears to be casting off last year’s more subdued reponse to Trump’s repeated attacks on the central bank in favor of a more public confrontation.

Powell issued a video statement Jan. 11 condemning the subpoenas as “pretexts” for Trump’s efforts to force him to sharply cut the Fed’s key interest rate. Powell oversaw three rate cuts late last year, lowering the rate to about 3.6%, but Trump has argued it should be as low as 1%, a position few economists support.

The Trump administration has accused Cook of mortgage fraud, an allegation that Cook has denied. No charges have been made against Cook. She sued to keep her job, and the Supreme Court Oct. 1 issued a brief order allowing her to stay on the board while they consider her case.

If Trump succeeds in removing Cook, he could appoint another person to fill her slot, which would give his appointees a majority on the Fed’s board and greater influence over the central bank’s decisions on interest rates and bank regulation.

Massachusetts court hears arguments in lawsuit alleging Meta designed apps to be addictive to kids

BOSTON (AP) — Massachusetts' highest court heard oral arguments Friday in the state's lawsuit arguing that Meta designed features on Facebook and Instagram to make them addictive to young users. The lawsuit, filed in 2023 by Attorney General Andrea Campbell, alleges that Meta did this to make a profit and that its actions affected hundreds of thousands of teenagers in Massachusetts who use the social media platforms. “We are making claims based only on the tools that Meta has developed because its own research shows they encourage addiction to the platform in a variety of ways,” said State Solicitor David Kravitz, adding that the state's claim has nothing to do the company's algorithms or failure to moderate content. Meta said Friday that it strongly disagrees with the allegations and is “confident the evidence will show our longstanding commitment to supporting young people.” Its attorney, Mark Mosier, argued in court that the lawsuit “would impose liabilities for performing traditional publishing functions” and that its actions are protected by the First Amendment.
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