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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
Appeals court rejects Trump’s bid to fire Fed Governor Lisa Cook
By Elisabeth Buchwald, Dan Berman, CNN
Updated:
9:46 AM EDT, Tue September 16, 2025
Source: CNN
President Donald Trump cannot remove Lisa Cook from the Federal
Reserve’s Board of Governors for now, a federal appeals court said in
an emergency ruling Monday, just hours before the central bank’s
two-day monetary policy meeting was set to kick off.
The decision from the US Court of Appeals for the District of Columbia
Circuit, split 2-1 along party lines, marks another defeat for the
White House’s efforts to control the Fed and economic policy. Trump
has sought to oust Cook , though Cook has not been charged with any
wrongdoing.
The Federal Reserve Act specifies that presidents can only fire Fed
governors “for cause,” and Trump has sought to leverage allegations
of mortgage fraud as a sufficient cause for firing.
“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,” Judges Bradley Garcia and Michelle Childs wrote
in their opinion.
“The district court issued its preliminary injunction after finding
that Cook is likely to succeed on two of her claims: her substantive,
statutory claim that she was removed without ‘cause’… and her
procedural claim that she did not receive sufficient process prior to
her removal in violation of the Due Process Clause of the Fifth
Amendment,” Garcia and Childs wrote.
In his dissenting opinion, Judge Gregory Katsas wrote that “President
Trump removed Cook for cause.”
Cook’s attorneys did not respond to CNN’s request for comment
following the ruling.
White House spokesperson Kush Desai told CNN in a statement on Tuesday:
“The President lawfully removed Lisa Cook for cause. The
Administration will appeal this decision and looks forward to ultimate
victory on the issue.”
The court’s decision comes just weeks after , who responded by suing
Trump based on “an unsubstantiated allegation” and that her firing
violated her due process rights. If Trump is ultimately successful in
removing Cook, it would mark the first time a Fed governor was fired by
a president in the central bank’s 111-year history.
At the same time the court ruled Trump couldn’t immediately fire
Cook, , Trump’s nominee to fill a separate seat on Fed’s Board, was
confirmed by the Senate.
Trump’s push to get the Fed to lower rates
The Fed is widely expected to lower interest rates at the conclusion of
their two-day policy meeting this week. However, it’s an open
question how big the cut will be at this and upcoming meetings.
Meanwhile, Trump’s push to oust Cook, a Biden appointee and the first
Black woman to serve on the Fed’s Board, comes amid a campaign to get
the central bank to lower interest rates.
As part of that effort, Trump has tried unsuccessfully into lowering
rates, calling him a “numbskull,” a “major loser” and “a very
stupid person” . He also threatened to fire him, but more recently
has said he’d allow Powell to stay on until his term as chair ends in
May.
While seven out of 12 members of the Fed’s interest rate-setting
committee are nominated by the president and confirmed by members of
the Senate, the central bank for decades has functioned .
Trump’s attempt to fire Cook raises serious concerns about the degree
of independence the Fed will have moving forward.
“President Trump’s attempted , if allowed, would mark an immediate
end to that history,” Cook’s attorneys wrote in a filing on
Saturday. Economists have expressed similar concerns, arguing that the
US economy’s success has been predicated on having an independent
central bank, which helps instill confidence in domestic and foreign
investors.
The Fed was designed to be independent from politicians specifically so
it could focus on economic data – and not political considerations
– in achieving its dual mandate to keep price increases in check
while supporting the job market.
Politicians often prefer lower interest rates, aiming to boost stock
prices and make it cheaper for people to borrow money, both popular
moves among voters. But lower interest rates risk igniting price
pressures. On the other hand, leaving rates too high could overly
restrict spending and hiring, hurting the economy.
Legal hurdles remain
Cook and her attorneys have argued that Trump’s use of “cause” is
an attempt to get around a Supreme Court decision from earlier this
year that appeared to limit the president’s ability to remove Federal
Reserve governors.
Trump, Cook argued in court papers, wants to redefine the meaning of
“cause” in a way that would allow him to fire any board member
“with whom he disagrees about policy based on chalked up
allegations.”
“President Trump does not have the power to unilaterally redefine
‘cause’ – completely unmoored to caselaw, history, and tradition
– and conclude, without evidence, that he has found it,” Cook’s
attorneys wrote.
The Trump administration called Cook’s claims to stay on the board
“meritless,” adding that concerns over whether Cook misrepresented
her finances pose concerns as to “whether Cook can be trusted to act
with forthrightness, care, and disinterest in managing the U.S. money
supply.”
This story has been updated with additional context and developments.
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