U.S. Appeals Court blocks Trump’s attempt to remove Fed Governor Lisa Cook

A U.S. appeals court on Monday refused to grant approval for President Donald Trump to dismiss Federal Reserve Governor Lisa Cook, leaving the Biden-era appointee in place ahead of a key policy meeting this week.

According to Reuters, the U.S. Court of Appeals for the District of Columbia Circuit denied the Justice Department’s request to pause an earlier ruling that barred Trump from removing Cook. This means the administration has only hours left to escalate the matter to the Supreme Court if it wants to prevent her participation in the Fed’s Tuesday and Wednesday policy meetings, where interest rate cuts are expected to be considered to support a weakening labor market.

The case stems from Trump’s allegations that Cook engaged in mortgage fraud prior to her appointment, accusations she has strongly denied. On September 9, U.S. District Judge Jia Cobb ruled that the claims were unlikely to justify her removal under the law that governs the Federal Reserve.

In a 2-1 decision, Circuit Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, upheld that position. Trump-appointed Judge Gregory Katsas dissented. Writing for the majority, Garcia noted that Cook appeared likely to succeed on her argument that her 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,” he said.

The Federal Reserve itself has remained neutral, stating that it will comply with any final court ruling but urging a swift resolution. For now, the decision ensures Cook will remain part of the Fed’s deliberations at a crucial moment for U.S. economic policy.