Federal Appeals Court Blocks Trump's Bid to Fire Fed Governor Lisa Cook
In a significant setback to President Donald Trump's efforts, a federal appeals court has temporarily blocked his attempt to remove Federal Reserve Governor Lisa Cook from her position on the central bank's governing board. The ruling, issued late Monday night by the US Court of Appeals for the District of Columbia Circuit, maintains Cook's seat pending further legal action or review.
According to the court's decision, Trump's administration had not met the stringent requirements to stay a lower judge's ruling that Cook should keep her position while the courts consider the grounds for her removal. The 2-1 ruling comes just hours before a key two-day meeting of the Federal Reserve, where the central bank is set to make a decision on interest rates.
Cook, who was appointed by President Joe Biden in 2023, has been at the center of controversy over allegations of unproven claims of fraud. Trump's administration had sought to remove her from the Fed board, citing concerns that she would undermine the central bank's independence and potentially influence monetary policy decisions.
The appeals court's decision is a significant victory for Cook, who becomes the first Black woman to serve on the Federal Reserve board. "This ruling is a testament to the importance of an independent Federal Reserve," said Cook in a statement. "I am committed to upholding the Fed's independence and ensuring that our monetary policy decisions are guided by data and evidence, not politics."
The decision also comes as Trump continues to push for more aggressive rate cuts, which some experts believe could have far-reaching consequences for the US economy. "This ruling is a welcome development, but it's only temporary," said economist Mark Zandi of Moody's Analytics. "We need to see a more permanent solution that ensures the Fed's independence and prevents future attempts to politicize monetary policy."
In a statement, Trump's administration expressed disappointment with the decision, saying that they would continue to pursue their efforts to remove Cook from the Fed board. However, it remains unclear what steps they will take next.
The Federal Reserve is set to make its interest rate decision on Wednesday and Thursday of this week. The outcome of this meeting will have significant implications for the US economy, with many experts predicting that a rate cut could lead to increased borrowing costs and potentially even a recession.
As the situation continues to unfold, one thing is clear: the Federal Reserve's independence has been reaffirmed, at least temporarily. Whether Cook will ultimately remain on the Fed board remains to be seen, but for now, she can breathe a sigh of relief.
Attribution:
Al Jazeera: "US appeals court blocks Trump’s bid to fire Lisa Cook from Federal Reserve"
Forbes: "Appeals Court Blocks Trump's Bid To Fire Fed Governor Lisa Cook For Now"
NPR News: "Federal Appeals Court Blocks Trump's Attempt to Fire Fed Governor Lisa Cook"
BREAKING: NPR News: "URGENT: Appeals Court Blocks Removal of Lisa Cook from Federal Reserve Board"
This story was compiled from reports by Al Jazeera, Forbes, NPR News and BREAKING: NPR News.
