In a ruling issued late Monday, the U.S. Court of Appeals blocked President Trump from immediately firing Federal Reserve Governor Lisa Cook, clearing the way for her to attend a closely watched policy meeting that began earlier today.
The Trump administration said it would appeal the decision, taking the case to the Supreme Court, but no timeline for the appeal has been announced.
Trump has been seeking to remove Cook from the Fed board since late August, when he attempted to fire her for cause following allegations that she made false claims on a mortgage application. Cook challenged the firing in court, and a federal judge ruled last week that Trump could not remove Cook while that case was still in progress. The judge also raised questions about Trump’s legal authority to fire a Fed board member. Trump appealed that ruling, taking the case to the court that weighed in on Monday night.
Fed meeting begins: The appeals court ruling means Cook is attending a two-day meeting of the Federal Open Market Committee, which determines the central bank’s interest rate policy. Also in attendance is Stephen Miran, the White House economist and Trump ally who was approved by the Senate late Monday to fill a vacant seat at the Fed.
Trump’s attempt to fire Cook is part of a multifaceted effort to influence the Fed, which includes nominating Miran and pressuring Fed chief Jerome Powell with insults and threats of removal. Trump wants the Fed to lower interest rates, which the central bank has held off on this year amid concerns that Trump’s tariff increases could ramp up inflationary pressure in the economy.
The FOMC — which consists of the Fed’s seven board members plus five of the regional bank presidents — is expected to vote to lower the central bank’s benchmark rate for the first time in 2025, giving Trump something of a win, though it’s not clear that his pressure will have been a major factor. Although Trump was able to add Miran to the board and appointed two other members during his first term, the majority of the seven-member board was appointed under different administrations.