Federal Reserve Gov. Lisa Cook sued last month after President Trump tried to fire her, accusing her of mortgage fraud|Brookings Institution|CC BY-NC ND 2.0
A federal appeals court on Monday blocked the Trump administration from removing Federal Reserve Governor Lisa Cook, allowing her to stay on the job while her lawsuit moves forward.
The 2-1 ruling came just before the Fed’s key meeting on interest rates, which is set to happen on September 16–17. Cook will be able to attend it.
Judges said Trump likely violated Cook’s due process rights by trying to fire her without notice or a chance to respond. Cook sued last month after Trump accused her of mortgage fraud—charges she denies.
The case has become a flashpoint in the battle over the Fed’s independence. Trump has repeatedly criticized Fed Chair Jerome Powell for not lowering borrowing rates more.
Meanwhile, the Senate confirmed Trump’s adviser Stephen Miran to the Fed board in a vote fast-tracked by Republicans.
Investors expect the Fed to cut rates by a quarter point on Wednesday, though Trump is pushing for a deeper reduction.