A federal appeals court on Monday blocked the Trump administration’s attempt to remove Federal Reserve Governor Lisa Cook ahead of this week’s key interest rate meeting, preserving her ability to vote on an expected rate cut.
The 2-1 decision from the U.S. Court of Appeals for the D.C. Circuit leaves in place a lower court ruling that reinstated Cook after President Trump fired her last month over mortgage fraud allegations. Judge Brad Garcia, writing for the majority, said Cook showed a “strong likelihood of success” on her due process claims. He was joined by Judge Michelle Childs, while Trump-appointed Judge Gregory Katsas dissented.
The administration argues Cook misrepresented properties in Michigan, Georgia, and Atlanta on mortgage filings, providing cause for removal. Justice Department lawyers insisted courts cannot second-guess the president’s decision when cause exists under federal law. Cook’s attorneys countered that the allegations are baseless and that she is entitled to contest them. They warned her removal would undermine the independence of the Federal Reserve.
U.S. District Judge Jia Cobb had earlier reinstated Cook, leading the administration to appeal. With the D.C. Circuit’s ruling, the White House may now turn to the Supreme Court, which has often sided with Trump in emergency requests.
Sources
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