Appeals Court Rejects Trump’s Bid to Fire Fed Governor Lisa Cook

September 17, 2025

President Donald Trump's attempt to remove Lisa Cook from the Federal Reserve's Board of Governors has been temporarily blocked by a federal appeals court in a 2-1 decision along party lines. Trump claimed he was firing Cook "for cause" over allegations of mortgage fraud, though she has not been charged with any wrongdoing. The court ruled that Trump failed to provide Cook with minimal due process before attempting to remove her.

Who is affected

Lisa Cook, Federal Reserve governor and the first Black woman to serve on the Fed's Board
President Donald Trump and his administration
The Federal Reserve as an institution
Federal Reserve Chair Jerome Powell (indirectly through Trump's criticism)
The U.S. economy and investors (due to potential impacts on Federal Reserve independence)

What action is being taken

The US Court of Appeals for the District of Columbia Circuit has issued an emergency ruling blocking Trump from removing Cook for now
Cook is suing Trump based on "an unsubstantiated allegation" and claiming her firing violated her due process rights
The White House is planning to appeal the decision according to spokesperson Kush Desai
The Federal Reserve is conducting its two-day monetary policy meeting and is widely expected to lower interest rates

Why it matters

This would be the first time a Fed governor was fired by a president in the central bank's 111-year history if Trump succeeds
The case threatens the Federal Reserve's independence, which economists argue is crucial for the U.S. economy's success and investor confidence
The Federal Reserve was specifically designed to be independent from politicians so it could focus on economic data rather than political considerations
The court's decision addresses the interpretation of the "for cause" requirement in the Federal Reserve Act that limits presidential power to remove governors
The case follows a Supreme Court decision from earlier this year that appeared to limit the president's ability to remove Federal Reserve governors

What's next

The White House will appeal the decision according to spokesperson Kush Desai, who stated: "The Administration will appeal this decision and looks forward to ultimate victory on the issue."

Read full article from source: The San Diego Voice & Viewpoint