Appeals Court Blocks Trump’s Bid to Oust Fed Governor Lisa Cook Ahead of Key Rate Decision

A federal appeals court has thwarted former President Donald Trump's attempt to immediately remove Federal Reserve Governor Lisa Cook, allowing her to participate in this week's critical policy meeting. The ruling preserves Cook's voting rights as her wrongful termination lawsuit progresses, marking another chapter in Trump's contentious relationship with the central bank.

The legal standoff stems from Trump's August dismissal of Cook over alleged mortgage fraud—a claim she decried as "unprecedented and illegal." With the Supreme Court yet to intervene, Cook retains influence over monetary policy decisions during a period of heightened economic sensitivity.

This development coincides with the Fed's upcoming two-day meeting, where policymakers are expected to cut benchmark interest rates. The episode underscores growing concerns about political interference in central bank operations, particularly after the Senate confirmed another TRUMP nominee to the Board of Governors on Monday night.