White House Moves to Challenges Court Block on Lisa Cook Removal
(MENAFN) The US government confirmed Tuesday it will challenge a court ruling that blocked President Donald Trump’s effort to remove Federal Reserve Governor Lisa Cook.
“The President lawfully removed Lisa Cook for cause. The Administration will appeal this decision and looks forward to ultimate victory on the issue," White House spokesman Kush Desai said in a statement to media.
This comes after the US Court of Appeals for the District of Columbia Circuit on Monday ruled that Trump cannot fire Cook just before the Federal Reserve’s critical two-day policy meeting, which starts Tuesday morning and will likely decide on interest rate cuts.
Cook, the first Black woman to serve as a Fed governor, was reportedly fired by Trump on August 25 amid mortgage fraud allegations—a charge she denies and for which no formal accusations have been filed. Immediately after her dismissal, Cook filed a lawsuit to contest the removal.
The Trump administration, however, requested an appeal last Thursday to suspend the lower court’s decision that allowed Cook to remain on the board during the upcoming Fed meeting.
The mortgage fraud claims originally came from Bill Pulte, director of the Federal Housing Finance Agency. Critics argue these allegations are baseless, politically driven, and part of Trump’s broader strategy to target perceived “enemies” through federal mechanisms.
Cook’s legal team insists Trump is using the accusations as a mere excuse to remove her amid pressure to influence Fed policy toward lowering interest rates.
President Trump has publicly criticized Fed Chair Jerome Powell for resisting rate cuts and even considered firing him—though such a move would break long-standing norms since Powell’s term is not yet complete. While Trump did not attempt to remove Powell, he did target Cook, a Biden appointee aligned with Powell’s stance on interest rates.
Currently, of the Fed’s seven governors, two are Trump appointees involved in setting rates. On Monday, the Senate confirmed Stephen Miran—one of Trump’s top economic advisers—to the board, despite controversy surrounding his appointment.
The Fed is expected to cut interest rates by 25 basis points in Wednesday’s announcement, responding to recent signs of labor market softening. The federal funds rate now stands between 4.25% and 4.5%.
Trump has repeatedly accused the Fed of moving too slowly on rate reductions, urging for a steeper cut than market forecasts predict this week.
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