Lisa Cook's Removal Blocks,Court Stops Trump

US Court Blocks Trump from Removing Fed Governor Lisa Cook

September 17, 2025

A federal appeals court has ruled that President Donald Trump cannot remove Federal Reserve Governor Lisa Cook from her position, delivering a setback to the White House ahead of a key monetary policy meeting.

In a 2-1 decision on Monday, the court said Cook could remain in office, ensuring her participation in the Federal Reserve’s policy meeting on Tuesday and Wednesday, where a cut in US interest rates is expected.

Trump had announced in August that he was firing Cook, accusing her of mortgage fraud. Cook denied the allegations and argued that the president lacked the authority to dismiss her.

The case raises significant questions about the independence of the Federal Reserve, which was established by Congress in 1913 with protections to shield it from political interference. No sitting US president has ever removed a Fed governor.

Under the Federal Reserve Act, governors may only be removed by the president “for cause,” though the law does not define the term or outline procedures for such action. The Trump administration is expected to appeal the ruling to the Supreme Court.

Cook, a Biden appointee and the first Black woman to serve as a Fed governor, sued the president last month, arguing that the attempt to remove her was politically motivated and tied to her policy positions.

The Fed has so far resisted cutting rates in 2025, citing inflation concerns partly fueled by Trump’s tariffs on imported goods. The president has repeatedly pressured the central bank to slash borrowing costs, openly criticizing Fed Chair Jerome Powell.

A rate cut is widely expected at this week’s meeting to stimulate a sluggish US labor market. On Monday, Trump again demanded aggressive action, writing on his Truth Social platform that Powell “must cut interest rates, now, and bigger than he had in mind.”

                                                                                        Source; BBC