On Monday, the U.S. Court of Appeals for the D.C. Circuit issued a ruling that prevents President Donald Trump from immediately terminating Lisa Cook from her position on the Federal Reserve Board of Governors. This decision allows Cook to participate in a critical interest rate-setting meeting that is set to start shortly. It remains uncertain whether the Trump administration plans to seek an emergency stay from the Supreme Court before the Federal Open Market Committee (FOMC) meeting begins on Tuesday. The White House has yet to respond to queries regarding this matter.
In the context of the FOMC meeting, the Federal Reserve is under increasing pressure from Trump to lower interest rates, which he believes is necessary to stimulate economic growth across the nation. Most analysts predict that a rate cut will be a key agenda item during the two-day meeting. The implications of the FOMC’s decisions are significant, ultimately affecting consumer borrowing costs for loans ranging from mortgages to credit cards.
Additionally, the D.C. Appeals Court’s ruling coincides with a narrow Senate vote, which confirmed Trump’s nominee, Stephen Miran, to the Federal Reserve Board by a vote of 48-47. Miran, the current head of the White House Council of Economic Advisers, is set to fill the vacancy left by Federal Reserve Governor Adriana Kugler, who resigned in August. Miran will serve the remainder of Kugler’s term, which is scheduled to conclude on January 31, 2026.
Last week, U.S. District Court Judge Jia Cobb intervened to temporarily halt Cook’s firing, citing concerns that Trump may have violated her due process rights. The judge pointed out that the Federal Reserve statute does not account for conduct occurring prior to a governor’s appointment, such as the alleged mortgage fraud associated with Cook. The accusations stemmed from Bill Pulte, a Trump appointee linked to the federal agency overseeing Fannie Mae and Freddie Mac, who claimed Cook may have misrepresented the usage of several properties in Michigan, Georgia, and Massachusetts.
Pulte’s allegations led him to refer Cook’s mortgage applications to the Justice Department for further investigation. Responding to Trump’s actions, Cook filed a lawsuit three days after her termination on August 28. This case, unprecedented in its context, questions whether Trump met the federal law’s “for cause” requirement to remove a sitting Fed governor, though it does not directly respond to the mortgage fraud allegations.
Amidst ongoing legal battles, the Justice Department initiated a criminal investigation into Cook on September 4 regarding the mortgage application accusations. Cook’s legal representation has consistently maintained her innocence, asserting in court filings that she never engaged in mortgage fraud. Furthermore, Cook’s lawyers have highlighted the potential danger of Trump’s efforts to dismiss her, framing it as an unsettling precedent that could jeopardize the autonomy of other members on independent federal boards.
