A US appeals court has rejected President Donald Trump’s effort to dismiss Federal Reserve Governor Lisa Cook, ruling that she can remain in her position ahead of a key policy meeting this week.
The US Court of Appeals for the District of Columbia Circuit on Monday declined the Justice Department’s request to pause an earlier ruling that prevented Trump from removing Cook, an appointee of former Democratic President Joe Biden. The decision leaves the administration with only hours to appeal to the US Supreme Court before the Fed begins its two-day meeting on Tuesday, where officials are expected to cut interest rates in response to a slowing labor market.
US District Judge Jia Cobb had earlier determined that Trump’s allegations of mortgage fraud against Cook, which she denies, were not strong enough grounds for dismissal under the law establishing the Federal Reserve.
The appeals court’s 2-1 decision saw Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, in the majority, while Trump appointee Judge Gregory Katsas dissented. Garcia, writing for the majority, argued that Cook is likely to succeed in her claim that she was denied due process under the Fifth Amendment.
“Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her,” Garcia noted.
The Federal Reserve, which has stayed out of the legal battle, said it will follow any final court decision but emphasized the need for a swift resolution.
What You Should Know
The D.C. Circuit Court has blocked Trump’s attempt to fire Fed Governor Lisa Cook, ruling she was denied due process.
Cook, appointed by Biden, is now set to participate in the Fed’s critical policy meeting this week. The administration may appeal to the Supreme Court within hours.
