Trump Demands Appeals Court Halt Ruling Blocking Fed’s Lisa Cook Ouster

Political pressure mounts as former president challenges judicial intervention in Federal Reserve leadership.

Legal Showdown Escalates

Trump's legal team files urgent motion to suspend lower court's protection of Fed Governor Lisa Cook—direct challenge to judicial oversight of executive authority.

Institutional Independence at Stake

Appeals court now holds key to defining boundaries between presidential power and Federal Reserve autonomy. Outcome could reshape central bank governance for years.

Market Implications Loom

Financial observers watch nervously—because nothing says 'stable monetary policy' like political medding in central bank leadership during economic uncertainty.

Justice Department tells court the clock is ticking

The Fed’s board is scheduled to begin its rate policy meeting Tuesday. As it stands, Lisa can still participate, as long as Cobb’s ruling remains in effect. Trump is asking the appeals court to issue a stay before that meeting starts.

If the court doesn’t rule in time, the White House is prepared to take the case straight to the Supreme Court. Trump’s decision to fire Lisa came after Federal Housing Finance Agency Director Bill Pulte accused her of mortgage fraud in three states.

In 2021, Lisa allegedly listed properties in Michigan and Georgia as her “primary residence” to receive better loan terms. Later, Pulte added another allegation, this time involving a third mortgage in Massachusetts.

Rather than issue a formal termination, Trump made the announcement online, a MOVE Judge Cobb said likely denied Lisa any “meaningful opportunity” to contest the allegations. That’s what triggered the legal pushback.

Cobb ruled that Trump’s method of firing could be unconstitutional, and that the allegations alone didn’t amount to legal “cause” for removal under the Fed’s rules.

If the three-judge appeals panel grants the stay, Trump’s action could go into effect immediately, regardless of whether the broader legal fight is over.

These kinds of emergency stays are only approved if judges believe the appeal has a good shot at success and that Trump would suffer “irreparable harm” without immediate relief. It’s not yet clear how fast the panel will decide.

Lisa hasn’t spoken publicly about this herself, while the Federal Reserve itself has remained neutral, saying it will honor the courts’ final decision.

But Lisa has previously said that Trump’s effort to remove her is part of a “politically motivated pattern”, warning that her ouster could damage public trust in the Fed and create long-term risks for the economy.

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