Published: 11:07, September 16, 2025 | Updated: 12:10, September 16, 2025
US appeals court says Trump can’t fire Cook before Fed meeting
By Bloomberg
Federal Reserve Chairman Jerome Powell, left, talks with Board of Governors member Lisa Cook, right, during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (PHOTO/AP)

A US appeals court blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook from her post while her lawsuit challenging the dismissal proceeds.

In a win for the embattled economist, a divided appeals court in Washington on Monday affirmed that Cook can continue working for now. The 2-1 ruling means that she can likely attend the Fed’s highly anticipated Sept 16-17 meeting to vote on interest rates. Trump is expected to ask the Supreme Court to step in.

The ruling comes as Trump’s economic adviser Stephen Miran is on his way to joining the Federal Reserve board after the Senate confirmed him to the post in a vote Monday evening.

Cook sued Trump last month after the president moved to oust her over allegations of mortgage fraud, which she denies. The lawsuit has emerged as a major flash-point in the growing clash between the White House and the Fed, which has resisted Trump’s demands to lower interest rates.

US District Judge Jia Cobb on Sept 9 ruled that Cook could remain on the job as her case proceeded, saying that Trump’s attempt to oust her likely violated the law. The appeals court decision allows that ruling to stand for now.

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The Justice Department released a statement that it “does not comment on current or prospective litigation including matters that may be an investigation.” The Fed declined to comment. Representatives of Cook and the White House didn’t immediately respond to requests for comment.

DC Circuit Judges J. Michelle Childs and Bradley Garcia, both appointed by former President Joe Biden, voted to reject the administration’s request to let Trump remove Cook from her position while the case goes forward. Judge Greg Katsas, appointed by Trump in his first term, dissented.

The court held that the district judge was correct to find that Trump likely violated Cook’s due process rights by attempting to fire her via a social media post.

“In this court, the government does not dispute that it failed to provide Cook even minimal process — that is, notice of the allegation against her and a meaningful opportunity to respond — before she was purportedly removed,” Garcia, joined by Childs, wrote.

Garcia wrote that he believed Cook was at least likely to win on her claim that Trump and other US officials who played a role in trying to oust her failed to provide her with due process — enough notice and an opportunity to object. Garcia didn’t address the lower court judge’s other finding that Trump’s purported reasons for trying to fire Cook failed to meet the standard of “cause” required to remove a Fed governor under US law.

Garcia also wrote that siding with Trump at this stage would be far more disruptive, given the fact that Cook had continued to perform her duties up until now. Garcia said the government had modern due process precedent “stacked against it.”

Katsas said that he didn’t believe a stay was warranted because the alleged harm to Cook wasn’t irreparable. He said she could always get her back pay returned to her if she ended up ultimately winning the case.

Trump said last month he was firing Cook after Federal Housing Finance Agency Director Bill Pulte accused her of fraudulently listing homes in Michigan and Georgia as a “primary residence” when she obtained mortgages in 2021 to secure more favorable terms on loans. Pulte later added a claim involving a third mortgage in Massachusetts.

READ MORE: Hearing ends without ruling on Trump's firing of Fed Governor Cook

Cook’s lawyer Abbe Lowell said in a filing last week that any ruling that threatens her attendance at the Fed meeting would “potentially plunge” the Fed’s vote “into turmoil” and would have “the real potential of impacting domestic and foreign markets.”

The judges didn’t address the underlying claims of mortgage fraud against Cook, and also did not reference reports over the weekend that loan documents for Cook’s Georgia home appear to contradict Pulte’s claim, showing that she told the lender the property was a vacation home.

Pulte pointed out in a social media post that the ruling is “for now.”

Senator Elizabeth Warren, a Massachusetts Democrat, hailed the ruling for “rejecting Donald Trump’s illegal attempt to take over the Fed so he can scapegoat away his failure to lower costs for American families.”

“If the courts – including the Supreme Court – continue to uphold the law, Lisa Cook will keep her seat as a Fed Governor,” she said.

Republicans fast-tracked approval of Miran’s nomination with Trump pressuring the central bank to cut interest rates.

Investors and economists surveyed by Bloomberg expect Fed officials to lower rates by a quarter percentage point on Wednesday. Undeterred, Trump predicted a “big cut” from the central bank.