Lawyers representing former U.S. President Donald Trump have made an urgent plea to the U.S. Court of Appeals for the District of Columbia Circuit, seeking to enforce his attempt to remove Federal Reserve Board Governor Lisa Cook from her position. This legal maneuver comes just days before the Federal Open Market Committee (FOMC) is scheduled to gather for a pivotal two-day meeting to discuss potential changes to benchmark interest rates.
The appeal was filed on Thursday, shortly after a lower-court ruling from U.S. Judge Jia Cobb halted Trump’s efforts to dismiss Cook while she pursues a lawsuit against him. The FOMC, where Cook serves, will convene on Tuesday, and Trump’s legal team is racing against time to secure a ruling by Monday afternoon. They argue that the committee’s upcoming discussions may influence open market activities that are critical to the nation’s economic direction.
Trump has been vocal in pushing for a decrease in interest rates, a strategy he believes could stimulate economic growth and alleviate the burden of national debt. His criticism has particularly targeted Fed Chairman Jerome Powell for his decision to maintain rates thus far into 2025.
While Trump has previously considered measures against Powell, he has focused his efforts on Cook, who was appointed under the Biden administration and has consistently aligned her votes with Powell’s decisions. Trump cites allegations of mortgage fraud levied by his administration’s housing finance director, Bill Pulte, as justification for Cook’s removal. However, Cook has firmly denied any wrongdoing.
In their court filing, Trump’s lawyers have requested a stay of Judge Cobb’s ruling, emphasizing the need for the Fed’s independence and arguing that public interest is better served by allowing Cook’s reinstatement. Cobb’s ruling highlighted concerns regarding the independence of the Federal Reserve, noting that Cook’s position should remain secure while the legal challenges unfold. The outcome of this appeal could significantly impact monetary policy and financial markets in the immediate future.
