Appeals Court Blocks Trump’s Attempt to Fire Fed Governor Lisa Cook — For Now

In a rare legal win for the Federal Reserve’s independence, an appeals court ruled late Monday that Lisa Cook will keep her seat on the Fed’s Board of Governors, at least for now, putting the brakes on Donald Trump’s unprecedented attempt to fire her over still-unproven fraud claims.

The 2-1 decision by the US Court of Appeals for the District of Columbia comes just ahead of a critical Fed meeting, where policymakers are expected to cut interest rates by at least 0.25 percentage points.

Trump had ordered Cook’s immediate removal last month, claiming she lied on a mortgage application, but so far, no formal charges or conclusive findings have been presented.

Judge Bradley Garcia, writing for the majority, wasn’t buying it.

“Cook’s due process claim is likely to succeed,” Garcia wrote, slamming the administration’s failure to give Cook any real chance to defend herself. “The government argues only that Cook ‘does not explain what difference a hearing would have made’… Cook’s entitlement to process stands apart from whether she would succeed in securing a different outcome.”

In other words: basic legal rights matter, even if the outcome might be the same.

Cook, a Biden appointee and one of only seven members of the Fed’s powerful board, says her ouster is illegal and politically motivated. And she’s got a strong case.

Under both the Federal Reserve Act and long-standing Supreme Court precedent, a president can only fire a Fed governor for cause, which generally means serious misconduct or malfeasance.

In 111 years of Fed history, no president has ever tried to fire a sitting governor.

Trump’s attempt has sparked widespread alarm about the future of the central bank’s independence — especially with the Fed resisting months of pressure from him to slash rates more aggressively ahead of the 2026 election cycle.

While Cook holds her ground in court, Trump is making other moves at the Fed.

The Senate voted 48-47 to confirm Stephen Miran, chair of Trump’s Council of Economic Advisers, to the Fed board.

That’s raised eyebrows too, especially since Miran hasn’t resigned from his White House post but is just taking a leave of absence. Critics say that blurs the line between policymaking and politics even further.