A U.S. appeals court has refused Donald Trump’s request to remove Federal Reserve Governor Lisa Cook, citing due‑process concerns. The decision by the U.S. Court of Appeals for the District of Columbia Circuit leaves the administration a narrow window to appeal to the Supreme Court if it wants to block Cook’s participation in the Fed’s upcoming policy meeting.
The meeting, set for Tuesday and Wednesday, is expected to focus on cutting U.S. interest rates to accommodate a cooling labor market. The D.C. Circuit’s ruling denied the Justice Department’s request to pause a lower‑court order that temporarily barred Trump from removing Cook, who was appointed by former President Joe Biden. U.S. District Judge Jia Cobb had previously found that Trump’s mortgage‑fraud claims against Cook were unlikely to meet the legal standard for removal under Federal Reserve law. Cook has denied the allegations.
The appeals court split 2‑1. Circuit Judges Bradley Garcia and J. Michelle Childs, both Biden appointees, formed the majority, while Trump‑appointed Judge Gregory Katsas dissented. In their opinion, Garcia and Childs noted that Cook is likely to succeed on her claim that she was denied due process in violation of the Fifth Amendment, emphasizing that the government gave her no meaningful notice or opportunity to respond to the accusations.
The Federal Reserve has not presented any legal arguments in the case and has said it will comply with any court ruling. The administration now faces a tight deadline to appeal to the Supreme Court if it wishes to prevent Cook from attending the policy meeting. The ruling underscores the importance of due process in removing federal officials and highlights the independence of the Federal Reserve. As the central bank prepares to make key interest‑rate decisions, the outcome of this case will be closely watched by financial markets and policymakers alike.
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