U.S. Appeals Court Blocks Trump’s Attempt to Remove Fed Governor Lisa Cook

A U.S. appeals court has barred former President Donald TRUMP from firing Federal Reserve Governor Lisa Cook, preserving the central bank's governance structure ahead of a critical policy meeting. The decision underscores the Fed's independence and limits presidential authority over monetary policymakers.

The D.C. Circuit's 2-1 ruling found Cook was denied due process, with allegations stemming from a 2021 mortgage application filed before her Fed tenure. Judges emphasized the Federal Reserve Act's "for cause" removal standard, protecting officials from political interference.

This precedent-setting case arrives as markets anticipate potential rate cuts, with the Fed's seven-member board maintaining its full complement despite the controversy. The outcome reinforces institutional safeguards designed to insulate monetary policy from partisan influence.