On Monday, September 15th, a federal appeals court blocked President Donald Trump from immediately removing Federal Reserve Governor Lisa Cook, rejecting the administration’s attempt to unseat her just hours before a critical interest rate-setting meeting. The 2-1 decision from the U.S. Court of Appeals for the D.C. Circuit allows Cook to remain on the Fed board while her lawsuit challenging the firing moves through the courts.
Cook, the first Black woman to serve on the Fed’s Board of Governors, sued Trump after he announced her removal. Her legal team argued the firing violated her due process rights and that federal law limits presidential authority to remove governors to cases of misconduct while in office. Cook joined the Fed board in 2022, and the allegations cited by the Trump administration involve mortgage applications from 2021. She has rejected the allegations and faces no formal charges.
The court ruling emphasized that Cook was not given notice of the allegations or an opportunity to respond, violating procedural due process. Judges Bradley Garcia and Michelle Childs noted the district court found Cook likely to succeed on claims that her removal lacked statutory cause and sufficient process. In dissent, Judge Gregory Katsas argued that Trump acted within his authority.
White House officials announced their intention to appeal the ruling to the Supreme Court. Spokesman Kush Desai explained, “The president lawfully removed Lisa Cook for cause. The administration will appeal this decision and look forward to ultimate victory on the issue.”
Separately, the Senate confirmed Trump’s nominee Stephen Miran to fill a vacant Fed seat. Miran, who chairs the White House Council of Economic Advisers, will join Cook and the other board members in the interest rate vote.
The legal battle over Cook’s removal underscores the delicate balance between presidential authority and the independence of the Federal Reserve, with the outcome likely to shape future interactions between the White House and the central bank.
