Court rejects Trump’s bid to remove Fed Governor Lisa Cook
A U.S. appeals court on Monday rejected President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook. It marked the first time since the Fed’s creation in 1913 that a president has tried to fire a sitting governor, raising concerns about the central bank’s independence.
The U.S. Court of Appeals for the D.C. Circuit ruled 2–1 against the Trump administration, leaving only a narrow window to appeal to the Supreme Court. Without intervention, Cook will attend the Fed’s policy meeting on Tuesday and Wednesday, where officials are expected to cut interest rates to support a cooling labor market.
Judge Jia Cobb previously blocked Trump’s removal effort on September 9, ruling that his claims of mortgage fraud—denied by Cook—did not meet the legal threshold for dismissal. Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, backed the decision, while Trump appointee Gregory Katsas dissented. Garcia wrote that Cook’s due process rights had been violated, noting she was not given a fair chance to respond to the allegations.
Cook, the first Black woman to serve as a Fed governor, filed suit in August, arguing Trump’s actions were politically motivated and tied to her stance on monetary policy. Her case underscores the legal protections designed to shield the Fed from political interference. By law, governors can only be removed “for cause,” a standard that has never before been tested in court.
The case also comes as the Senate narrowly confirmed Trump’s nominee Stephen Miran to another Fed board seat. This ensures both Miran and Cook will take part in this week’s rate-setting meeting.
The dispute carries major implications for central bank independence. Trump has repeatedly pressured the Fed to slash interest rates, clashing with Chair Jerome Powell over the pace of monetary policy. The Supreme Court has previously upheld Trump’s power to remove officials from other independent agencies, but in earlier rulings it described the Fed as a “uniquely structured” institution with stronger protections.
Cook’s lawyers argue that her removal would disrupt markets, while Trump’s team insists that firing her would strengthen confidence in the Fed. The case is still unfolding as federal prosecutors investigate separate mortgage fraud claims, which Cook and local property records dispute.
