Federal court blocks Trump from sacking Lisa Cook

September 16, 2025

President Donald Trump's attempt to fire Federal Reserve governor Lisa Cook has been blocked by a 2-1 federal appeals court ruling. Cook, a Biden appointee and the first Black woman to serve as Fed governor, was accused by Trump of mortgage fraud in August, allegations she denied while asserting the president lacks authority to remove her. This case has significant implications for the Federal Reserve's independence from political interference, as the 1913 law establishing the Fed only permits governor removal "for cause" without clearly defining this term.

Who is affected

Federal Reserve governor Lisa Cook
US President Donald Trump
The Federal Reserve as an institution
The US economy and financial markets
American consumers and businesses impacted by interest rate decisions

What action is being taken

A federal appeals court is ruling against Trump's attempt to fire Cook
The Trump administration is expected to appeal the ruling to the Supreme Court
The Federal Reserve is preparing for a policy meeting to decide on interest rates
Cook is continuing to serve in her role as Fed governor
Trump is publicly demanding aggressive interest rate cuts

Why it matters

The case has significant implications for the Federal Reserve's independence from political interference
It tests the legal boundaries of presidential power over Fed governors
The ruling preserves the Fed's ability to make monetary policy decisions without direct political control
It maintains the historical precedent that no president has ever removed a Fed governor
It ensures Cook's participation in the upcoming interest rate decision, which impacts the broader economy

What's next

The Trump administration is expected to take Monday's ruling to the Supreme Court

Read full article from source: BBC