TLDR
- A federal appeals court ruled that President Trump cannot fire Fed Governor Lisa Cook before the FOMC meeting.
- The court’s 2-1 decision blocks Trump’s attempt to remove Cook while her lawsuit against him continues.
- The ruling ensures Lisa Cook’s participation in the FOMC meeting where interest rates will be discussed.
- Trump’s legal team failed to meet the requirements for an emergency stay of the lower court’s decision.
- Cook has denied the allegations of mortgage fraud that led to Trump’s attempt to remove her.
A federal appeals court has ruled that President Donald Trump cannot fire Federal Reserve Governor Lisa Cook before the Federal Open Market Committee (FOMC) votes on interest rates. The court’s 2-1 decision blocks Trump from removing Cook during her lawsuit against the administration. This ruling allows Cook to attend the crucial two-day FOMC meeting set to begin on Tuesday.
Trump’s Emergency Request Denied by Appeals Court
Trump’s legal team sought an emergency stay to pause a lower court’s decision. The lower court had ruled that Trump could not fire Cook while her case against the president continues. The U.S. Court of Appeals for the District of Columbia Circuit ruled against Trump’s request, stating his team had not met the required criteria for a stay pending appeal.
The appeals court’s decision upholds the lower court’s findings that Trump’s move to fire Cook may violate constitutional protections. The judges explained that Cook’s rights to due process must be protected. “The President lawfully removed Lisa Cook for cause,” White House spokesman Kush Desai stated, signaling plans to appeal to the Supreme Court.
Lisa Cook Denies Allegations and Prepares for FOMC Meeting
Lisa Cook, appointed by Joe Biden, has been a consistent ally of Fed Chair Jerome Powell. Trump moved to dismiss Cook in late August, citing allegations of mortgage fraud. Cook, however, has denied these allegations and filed a lawsuit to block her firing.
The Federal Reserve Governor’s legal team argues that Trump’s action violates the Constitution, particularly regarding the due process clause. The court’s ruling ensures that Cook can participate in the FOMC meeting, which is pivotal for discussions on interest rate adjustments. Cook’s participation in the meeting could significantly influence decisions regarding future rate cuts.
In response to the court’s ruling, President Trump’s administration has vowed to appeal the decision. They hope for a different outcome at the Supreme Court. This ongoing legal battle highlights the tensions between the White House and the Federal Reserve, especially as Trump seeks to lower interest rates.
