A US appeals court has blocked former President Donald Trump’s attempt to remove Lisa Cook, a Federal Reserve governor, marking a significant development in a legal battle that could impact the Fed’s independence. The court’s ruling preserves Cook’s position at the Federal Reserve ahead of the central bank’s important policy meeting this week, where the Federal Reserve is expected to cut US interest rates to support a slowing labor market.
What Happened
On Monday, the US Court of Appeals for the District of Columbia Circuit ruled 2-1 to uphold a previous decision by US District Judge Jia Cobb, denying the Justice Department’s request to delay her ruling. This decision prevents Trump from firing Cook, an appointee of former President Joe Biden, as Trump had claimed she was unfit due to alleged misconduct before taking office. Cook has denied these accusations, and the court found that they were insufficient grounds for removal under the law that established the Federal Reserve.
This decision marks the first time in history that a US president has sought to remove a Federal Reserve governor, raising questions about the central bank’s independence. The Trump administration is expected to appeal this ruling to the US Supreme Court, which could further complicate the matter.
Who Was Involved
Lisa Cook: Cook, a former economist, became the first Black woman to serve on the Federal Reserve Board when she was appointed by President Biden. She has been a key voice on the board and was involved in important decisions regarding US monetary policy.
Donald Trump: The former president, who appointed several Federal Reserve governors during his tenure, attempted to remove Cook from her position, alleging that she had committed mortgage fraud. Cook has denied these allegations, asserting that they were used as a pretext for her removal due to her policy stance.
Judge Jia Cobb: The US District Judge ruled in September 2025 that Trump did not have sufficient grounds to remove Cook, as the law only permits removal for “cause,” which was not established in Cook’s case.
US Court of Appeals Judges: The panel, which ruled on the case, consisted of Judges Bradley Garcia and J Michelle Childs—both appointed by President Biden—who voted in the majority. Judge Gregory Katsas, a Trump appointee, dissented.
Career/Legacy or Background
The Federal Reserve, founded in 1913, has long been shielded from political interference, and the law governing its governors has never been tested in court before. Governors of the Fed can only be removed “for cause,” a term that is not clearly defined in the law. Cook’s case is seen as a pivotal moment in understanding the scope of executive power over the central bank.
Cook, who has a distinguished career in economics, became a central figure in the debate about the Fed’s independence when Trump attempted to remove her. She filed a lawsuit against Trump and the Federal Reserve, arguing that her removal was a politically motivated attack on her role in shaping monetary policy.
Public/Social Media Reactions
The court’s decision has drawn widespread attention, particularly among those concerned with the politicization of the Federal Reserve. Many experts have praised the ruling as a win for the independence of the central bank, ensuring that decisions related to monetary policy are not unduly influenced by political pressures.
Social media reactions have been mixed, with some supporting Cook’s continued role on the Fed, while others argue that the president should have the right to remove appointees for policy-related reasons.
Official Statements or What Happens Next
As of now, the Trump administration has not commented directly on the ruling. However, it is expected that the Justice Department will pursue an appeal to the US Supreme Court.
Cook’s case remains at the intersection of political influence and central bank independence, and her continued service on the Federal Reserve Board will be closely watched in the coming months.
This story may be updated with more information as it becomes available.
