A federal appeals court delivered a significant ruling on Monday night, dismissing former President Donald Trump’s emergency request to terminate Federal Reserve Governor Lisa Cook. This decision arrives just hours before a crucial two-day Federal Reserve meeting, during which key deliberations on interest rates are anticipated.
In a 2-1 ruling, the U.S. Court of Appeals for the District of Columbia Circuit upheld a lower court’s decision that allows Cook to retain her position while her legal battle against her dismissal unfolds. Consequently, Cook is expected to participate in the Federal Reserve’s meetings unless the Trump administration opts to take the issue to the Supreme Court.
Judge Bradley Garcia, a Biden appointee who authored the concurring opinion, emphasized that approving the government’s emergency request to remove Cook would “upend, not preserve, the status quo.” He warned that such a move could lead to disruptions, including the “repeated removal and reinstatement” of Cook throughout the litigation process. Garcia underlined Cook’s right to a fair process, stating that she has a property interest in her position. He pointed out that even the Trump administration acknowledged it had not bestowed meaningful notice or a chance for Cook to respond to the removal allegations.
The appeals court ruling reinforces a decision made by D.C. federal judge Jia Cobb, who had determined that Cook convincingly argued her removal violated the Federal Reserve Act’s provisions for “for cause” dismissals.
Amid this litigation, the Senate confirmed Trump’s economic adviser Stephen Miran to join the Federal Reserve Board. Miran’s nomination passed narrowly, with a 48-47 vote that reflected party lines. Democratic senators expressed apprehension regarding his appointment and its potential impacts on the central bank’s independence. Sen. Elizabeth Warren notably referred to Miran as a “Donald Trump puppet,” warning that he might assist in undermining the Fed’s autonomy.
Trump’s attempts to fire Cook were initiated late last month, alleging her involvement in mortgage fraud. The former president claimed in a letter to Cook that the Federal Reserve Act grants him the authority to remove governors for cause and asserted he had determined sufficient grounds for her dismissal. His allegations stemmed from claims made by Federal Housing Finance Agency Director Bill Pulte, who accused Cook of fraudulently designating two properties as her primary residence.
In her defense, Cook criticized the legality of Trump’s action, asserting her determination to stand firm in her role: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
