Trump blocked from firing Fed Governor Lisa Cook just hours before the Federal Reserve’s crucial interest rate meeting began. The U.S. Court of Appeals for the D.C. Circuit issued the decision Monday. This ruling ensures Cook remains in her role for now.
Trump attempted to remove Cook from the Federal Reserve Board of Governors on August 25. Cook quickly responded by suing Trump in federal court on August 28. She also named the Federal Reserve Board and Chairman Jerome Powell as co-defendants in her lawsuit.
Trump’s move followed allegations from Bill Pulte. He accused Cook of mortgage fraud involving properties in three states. The loans were issued in 2021—before Cook’s Fed nomination by President Biden. Pulte referred the matter to the Justice Department twice.
However, Cook’s legal team has strongly denied any wrongdoing. Her lawyer, Abbe Lowell, wrote in a court filing that she “did not ever commit mortgage fraud.” The Justice Department launched a criminal investigation on September 4.
Even so, the D.C. Circuit Court determined Trump lacked the legal authority to remove her so quickly. The court agreed with an earlier ruling from Judge Jia Cobb. She temporarily blocked Cook’s firing and cited due process concerns.
Cook’s attorneys argued that Trump’s attempt to oust her violated the law. They said the “for cause” removal standard under federal statute was not met. They also warned that this move could set a dangerous precedent for other independent agencies.
The court’s decision allows Cook to participate in the Federal Open Market Committee (FOMC) meeting. That meeting influences interest rates across the country. Decisions made there directly affect loans, credit cards, and mortgages.
Meanwhile, Trump succeeded in confirming Stephen Miran to the Fed Board. The Senate approved Miran 48-47 late Monday. Miran, who leads the White House Council of Economic Advisers, will also join the FOMC meeting.
The White House did not comment when asked about the court’s decision. It also remains unclear if the Trump administration will appeal to the Supreme Court.
Still, Trump blocked from firing Fed Governor Lisa Cook marks a legal victory for her team. The case may also shape future battles over independent federal appointments.
In a time of economic uncertainty, the decision ensures Cook’s voice stays active in shaping policy. And with the Fed poised to act, every vote matters.
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