A federal appeals court has dismissed former President Donald Trump’s emergency request to remove Federal Reserve Governor Lisa Cook, a ruling that coincides with a significant two-day meeting where the central bank is expected to decide on interest rates. The U.S. Court of Appeals for the District of Columbia Circuit, in a 2-1 decision, upheld a lower court ruling that allows Cook to maintain her position while her legal challenges regarding the attempted removal proceed.
This decision enables Cook to participate in the crucial Federal Reserve meeting unless the Trump administration seeks intervention from the Supreme Court. Judge Bradley Garcia, a Biden appointee, expressed in his concurring opinion that granting the government’s emergency request would disrupt the status quo and could create confusion with repeated removals and reinstatements of Cook throughout the litigation. He emphasized that Cook has a property interest in her role and is entitled to due process before any removal, pointing out that the Trump administration did not offer her any meaningful notice or opportunity to contest the allegations made against her.
The ruling affirms a recent decision by D.C. federal judge Jia Cobb, who indicated that Cook had convincingly shown that her removal was in violation of the Federal Reserve Act’s provisions regarding dismissal “for cause.”
In the midst of this legal battle, Trump’s economic adviser Stephen Miran has been confirmed to join the Federal Reserve board, following a narrow Senate vote of 48-47, largely along party lines. Concerns have been raised by Democrats regarding the potential impact of Miran’s appointment on the independence of the central bank. Senator Elizabeth Warren, a vocal critic, labeled Miran a “Donald Trump puppet,” cautioning that his presence could facilitate efforts to undermine the Fed’s autonomy.
Trump’s attempt to remove Cook arose last month when he accused her of mortgage fraud, claiming that she had misrepresented two properties as her primary residence. In a letter to Cook, Trump asserted his right under the Federal Reserve Act to dismiss governors “for cause” but provided no legal basis for the allegations. In response, Cook challenged the legality of the dismissal, declaring that there was no justified reason for her removal and reaffirming her commitment to continue her duties in support of the American economy.
Senator Warren highlighted the ongoing judicial rejections of Trump’s removal attempt, stating on social media, “The courts keep rejecting Donald Trump’s illegal attempt to take over the Fed so he can scapegoat away his failure to lower costs for American families. If the courts – including the Supreme Court – continue to uphold the law, Lisa Cook will keep her seat as a Fed Governor.”
