Appeals Court Blocks Trump From Firing Fed’s Lisa Cook Before Rate Vote
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A federal appeals court ruled on Monday that Federal Reserve Governor Lisa Cook can remain in her position, dealing a significant blow to President Donald Trump’s unprecedented attempt to remove a sitting official from the U.S. central bank.
Newsweek contacted the White House to seek comment via email after office hours.
Why It Matters
Trump’s bid to fire Cook represents an unheard-of bid to reshape the Fed’s seven-member governing board, which was designed to be independent of politics, and comes as Trump presses the Fed to lower interest rates.
The president announced on August 25 that he was firing Cook, “in light of your deceitful and potentially criminal conduct in a financial matter,” adding that he no longer had “confidence in your integrity.” He cited allegations of mortgage fraud.
In response, Cook filed a lawsuit calling her termination “unprecedented and illegal,” saying that Trump’s allegations were “unsubstantiated.” She sought an immediate injunction against her firing and for reinstatement to the Fed’s Board of Governors.
What To Know
Monday’s ruling comes just one day before the Federal Reserve begins a crucial two-day interest rate-setting meeting.
Trump’s administration has indicated it will quickly appeal to the Supreme Court in a final attempt to remove Cook before the Fed’s decision on monetary policy.
A federal judge ruled last week that Cook’s removal was illegal and reinstated her to the Fed’s governing board.
The president’s appointee, Bill Pulte, has accused Cook of mortgage fraud, alleging she claimed two properties as “primary residences” in July 2021 before joining the Fed board. Such designations can result in lower mortgage rates and reduced down payment requirements compared to rental or second-home classifications.
Cook has denied these accusations. Meanwhile, the Senate has confirmed Stephen Miran, Trump’s nominee for an open position on the Fed board, adding another Trump appointee to the governing body.
Reuters reported late last week that newly unearthed documents challenged the Trump administration’s claims that Cook committed mortgage fraud.
A loan estimate for an Atlanta property purchased by Cook, first obtained by the news agency, shows that she told the lender she planned to use it as a “vacation home.” Claiming both her Atlanta and Michigan properties as her primary residence would have potentially granted her more favorable mortgage and tax rates.
What People Are Saying
Roger Stone on X in August: “Federal Reserve Governor Lisa Cook is cooked. Said her home in Ann Arbor, Mich. was her principal legal residence getting a state tax break and a lower mortgage and insurance rate. Two weeks later, she said her home outside of Atlanta was her principal legal residence getting a state tax break and a lower mortgage and insurance rate. This is mortgage fraud.”
Alan Blinder, former vice chair at the Fed, told CNN on August 25: “The bigger picture is sadly simple: The Federal Reserve is designed to be independent of politics, for very good reasons. He is trying to end that and make it an arm of the Trump administration, which will be very bad for monetary policy if it happens.”
Democratic Senator Elizabeth Warren of Massachusetts on X in August: “Trump’s attempting to fire Lisa Cook to turn the Federal Reserve into the ‘Central Bank of Trump.’ The Fed makes decisions based on economic data—not political pressures. This move would undermine the world’s confidence in our economy and harm working people. And it is illegal.”
Trump in his termination letter, in part: “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
What Happens Next
The Trump administration is expected to turn to the Supreme Court in its bid to unseat Cook before this week’s Fed meeting, when it is expected to begin lowering interest rates.
This is a breaking news story. Updates to follow.
Reporting by the Associated Press contributed to this article.
Update 9/15/2025, 9:15 p.m. ET: This article has been updated to include more information.
Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the board on June 25 in Washington, D.C. Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the board on June 25 in Washington, D.C. AP Photo/Mark Schiefelbein, File
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