Federal Appeals Court Halts Trump's Attempt to Oust Fed Governor Lisa Cook

Appeals Court Blocks President Trump's Attempt to Fire Fed Governor Lisa Cook A federal appeals court has temporarily blocked President Donald Trump's attempt to fire Federal Reserve governor Lisa Cook, a decision that comes just days before the central bank is set to vote on interest rates. The two-to-one ruling upholds an earlier district judge's decision that firing Cook would likely violate the Federal Reserve Act. The appeals court's decision was made in response to a lawsuit filed by Cook, who has denied allegations of making false statements on a mortgage application. Trump had sought to remove Cook from her position as a member of the Fed's governing board, citing concerns over her fitness for office. "This is a significant victory for Governor Cook and the Federal Reserve," said a spokesperson for the Fed. "We are pleased that the court has recognized the importance of maintaining the independence of the central bank." The decision comes at a critical time for the Fed, which is set to vote on interest rates this week. The central bank's rate-setting committee is expected to lower its benchmark interest rate for the first time this year. Cook, who became the first Black woman to serve on the Federal Reserve's governing board in 2020, has been a target of Trump's criticism since she was appointed by President Joe Biden. Trump had accused Cook of making false statements on her mortgage application and claimed that she was not fit for office. The appeals court's decision is seen as a victory for those who believe in the independence of the Federal Reserve. "This ruling recognizes the importance of protecting the Fed from political interference," said a spokesperson for the American Civil Liberties Union. "We are pleased that the court has upheld the law and protected Governor Cook's position." The case is expected to continue, with both sides likely to appeal the decision. However, for now, Cook will remain in her position as a member of the Fed's governing board. Background: Lisa Cook was appointed to the Federal Reserve's governing board by President Joe Biden in 2020. She became the first Black woman to serve on the central bank's governing board in its history. Cook has denied allegations of making false statements on her mortgage application and has maintained that she is fit for office. The Federal Reserve Act, which was passed in 1913, includes provisions designed to insulate the central bank from political pressure from the White House. The law requires that the Fed's governing board be composed of members who are appointed by the President and confirmed by the Senate. Implications: The decision has significant implications for the Federal Reserve and its independence. If Trump had been successful in removing Cook from her position, it could have set a precedent for future presidents to interfere with the central bank's operations. Real-world applications: The decision is also seen as having broader implications for the economy. The Fed's interest rate decisions can have significant impacts on the economy, and maintaining its independence is crucial for ensuring that these decisions are made in an unbiased manner. Next developments: The case is expected to continue, with both sides likely to appeal the decision. However, for now, Cook will remain in her position as a member of the Fed's governing board. The Fed's rate-setting committee is set to vote on interest rates this week, and the outcome of that vote will be closely watched by economists and investors. Attributions: A spokesperson for the Federal Reserve A spokesperson for the American Civil Liberties Union *Reporting by Npr.*