URGENT UPDATE: A federal appeals court has just BLOCKED President Donald Trump’s emergency attempt to fire Federal Reserve Governor Lisa Cook, crucially ahead of a significant two-day meeting on interest rates. The U.S. Court of Appeals for the District of Columbia Circuit ruled in a 2-1 decision late Monday night, allowing Cook to remain in her position while her legal battle against the dismissal unfolds.
The timing of the ruling is critical, as the Federal Reserve is poised to make pivotal decisions impacting the economy. The court’s decision means Cook is likely to participate in the meeting unless the Trump administration seeks intervention from the Supreme Court. Judge Bradley Garcia, who supported the ruling, emphasized that removing Cook would “upend, not preserve, the status quo,” warning of potential disruptions during ongoing litigation.
This ruling follows a lower court’s decision made by Judge Jia Cobb, who determined that Cook’s removal was likely in violation of the Federal Reserve Act’s “for cause” provision. The judge noted that the Trump administration did not provide Cook with “meaningful notice or opportunity to respond” before attempting to dismiss her.
As the legal proceedings continue, Trump’s economic adviser Stephen Miran is set to join the Federal Reserve board after the Senate narrowly approved his nomination with a 48-47 vote. The vote was split along party lines, raising concerns among Democrats about potential threats to the central bank’s independence. Senator Elizabeth Warren voiced strong opposition, labeling Miran a “Donald Trump puppet” who may assist in undermining the Federal Reserve’s autonomy.
Earlier this month, Trump initiated the move to fire Cook, alleging that she had committed mortgage fraud by claiming two properties as her primary residence. In his letter to Cook, Trump asserted that the Federal Reserve Act allows governors to be removed at his discretion “for cause,” claiming he had determined sufficient grounds for her dismissal.
In response, Cook firmly rejected these allegations, stating, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
With the Federal Reserve’s critical decisions looming, all eyes will be on the developments surrounding this case and how it might affect economic policy moving forward. Stay tuned for more updates on this evolving situation.