President Donald Trump's administration on Tuesday said it will appeal a federal appeals court ruling that blocked the president from immediately removing Federal Reserve Governor Lisa Cook, an eleventh-hour legal move that comes as the Federal Open Market Committee convenes for a two-day meeting expected to consider interest-rate cuts.
White House officials confirmed to reporters that the administration will seek relief from the U.S. Supreme Court and file for a stay of the lower court's decision. "The president lawfully removed Lisa Cook for cause," White House spokesman Kush Desai said in a statement. "The administration will appeal this decision and looks forward to ultimate victory on the issue."
On Monday night, the U.S. Court of Appeals for the D.C. Circuit temporarily enjoined the president from firing Cook, clearing the way for her to participate in the FOMC meeting that begins Tuesday. The decision followed a separate temporary injunction issued last week by U.S. District Judge Jia Cobb, who concluded that Cook likely was denied due process and that the Federal Reserve statute does not plainly permit removal for conduct that occurred before a governor took office.
Cook sued President Trump on Aug. 28 after he removed her from the Fed board on Aug. 25. Her complaint named Trump, the Board of Governors of the Federal Reserve System and Chairman Jerome Powell, asking the court to block the ouster and to resolve whether the president satisfied the "for cause" standard required to remove a sitting Fed governor. Lawyers for Cook have argued the move is unprecedented and could set a dangerous precedent for independent federal boards.
The allegations that prompted scrutiny stem from referrals by Bill Pulte, a Trump appointee to the federal agency that oversees Fannie Mae and Freddie Mac, who questioned Cook's mortgage applications related to three properties in Michigan, Georgia and Massachusetts. The loans were issued in 2021, before Cook was nominated by President Joe Biden to the Fed board. The Justice Department opened a criminal investigation into Cook on Sept. 4. In court filings, Cook's lawyer Abbe Lowell said she "did not ever commit mortgage fraud."
The appeals court's action came as the Senate on Monday night narrowly confirmed Stephen Miran, the chair of the White House Council of Economic Advisers, to the Fed board by a 48-47 vote. Miran will sit alongside Cook and other governors during the FOMC meeting, which is closely watched by markets and affects borrowing costs across mortgages, credit cards and other consumer loans.
For months, President Trump has publicly pressed the Federal Reserve to lower interest rates to stimulate economic growth. Many Fed watchers expect the central bank to consider rate cuts at the meeting, a decision that could have broad effects on the U.S. economy.
Legal experts and Cook's attorneys have emphasized the novelty of the case. Judge Cobb's temporary injunction noted questions about whether the president had satisfied statutory requirements to remove a governor "for cause," and whether procedural protections were observed. The administration argues that the removal was lawful and has moved quickly to appeal the district and appellate court rulings.
It was not immediately clear whether the White House would seek an emergency stay from the Supreme Court before the Fed's policy meeting concludes. Appeals court orders that preserve Cook's role for now mean she can participate fully in the committee's deliberations absent further action by the high court.
The litigation is likely to continue beyond the meeting. If the administration pursues review, the high court could be asked to address the statutory interpretation of the Federal Reserve's protections against removal and the scope of presidential authority over independent agencies. Meanwhile, the FOMC's decision and the presence of both Cook and Miran on the board will shape immediate monetary policy decisions and market expectations.
