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Appeals Court halts Trump’s bid to oust Fed Governor Lisa Cook

  • By Al Mayadeen English
  • Source: Agencies
  • 16 Sep 2025 08:09
3 Min Read

The D.C. Circuit Court’s split ruling preserves Lisa Cook’s role at the Fed, underscoring a rare legal fight over presidential power and central bank autonomy.

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  • Appeals Court halts Trump’s bid to oust Fed Governor Lisa Cook
    Lisa Cook speaks at the Federal Reserve building, September 23, 2022, in Washington. (AP)

A US appeals court on Monday rejected President Donald Trump’s bid to oust Federal Reserve Governor Lisa Cook, marking the first time since the Fed’s creation in 1913 that a president has tried to fire a sitting board member. The ruling underscores a high-stakes legal clash that could reshape the Fed’s independence.

The D.C. Circuit Court of Appeals declined to pause an earlier decision from US District Judge Jia Cobb, who had temporarily blocked Cook’s removal. Cobb found that allegations Trump raised against Cook, claims of mortgage fraud that she denies, likely did not constitute legal grounds for dismissal under the statute governing the Fed.

In a 2-1 ruling, Judges Bradley Garcia and J. Michelle Childs, both appointed by President Biden, formed the majority, while Trump-appointed Judge Gregory Katsas dissented.

The ruling by the US Court of Appeals for the District of Columbia Circuit allows Cook to stay on the Fed board for now, ensuring her participation in this week’s policy meeting, where officials are widely expected to lower interest rates to support a slowing labor market.

Writing for the court, Garcia said Cook’s constitutional rights had been violated, “Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her.”

White House and Fed quiet

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The White House declined immediate comment, while the Fed stressed its intent to comply with court orders and expressed hope for a swift resolution. Cook’s legal team also remained silent after the decision.

Meanwhile, the Senate narrowly approved Trump’s nominee for another Fed seat, Stephen Miran, in a 48-47 vote, clearing the way for him to join Cook at this week’s policy meeting.

Congress deliberately insulated the Fed from political pressure when it established the central bank. Governors may only be removed by a president “for cause,” though that term remains undefined and largely untested in court. No Fed governor has ever been dismissed by a president.

Garcia’s opinion emphasized that Cook’s due-process claim was strong enough that the panel did not need to decide the broader question of what constitutes “for cause” removal.

Cook, the Fed’s first Black woman governor, sued Trump and the Federal Reserve in August, arguing that the fraud allegations were a pretext to punish her for her monetary-policy stance.

Clash over presidential power

Trump’s lawyers claim that the president has broad discretion to decide when removal is warranted and that courts lack authority to second-guess such judgments. Critics counter that the case has sweeping implications for the Fed’s ability to set interest rates free from political influence.

Trump has repeatedly urged the Fed to slash rates more aggressively, openly criticizing Chair Jerome Powell. While the central bank has resisted, it is widely expected to cut rates this week amid concerns about slowing job growth.

Although the Supreme Court has previously sided with Trump in allowing him to remove officials from independent agencies, the justices recently signaled that the Fed may hold a unique status as a “quasi-private entity” with a distinctive history.

  • US Central Bank
  • United States
  • Lisa Cook
  • US Federal Reserve
  • Donald Trump

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