Fed Governor Lisa Cook Asks Appeals Court to Reject White House Bid to Remove Her
Cook’s lawyers say firing her would threaten Federal Reserve independence as the central bank prepares for an interest-rate decision
Federal Reserve Governor Lisa Cook on Saturday urged a U.S. appeals court to deny the Trump administration’s emergency request to stay a lower court ruling that would block her removal from the Fed’s board ahead of the central bank’s upcoming policy meeting.
In a filing, attorneys for Cook asked the court to refuse the administration’s request for an emergency stay and said the government had not shown sufficient cause to terminate her. The appeals court set a deadline for the administration to respond by 3 p.m. Eastern on Sunday.
Cook’s lawyers argued that allowing the president to remove a Fed governor without cause would imperil the institution’s independence and pose economic risks. “A stay by this court would therefore be the first signal from the courts that our system of government is no longer able to guarantee the independence of the Federal Reserve. Nothing would then stop the president from firing other members of the board on similarly flimsy pretexts. The era of Fed independence would be over. The risks to the nation’s economy could be dire,” the filing said.
At issue is whether the administration can succeed in an extraordinary effort to change the composition of the Fed’s seven-member board before the Federal Open Market Committee meets Tuesday and Wednesday to consider cutting the central bank’s benchmark interest rate. If the appeals court grants the administration’s emergency request, Cook would be removed from the board while her legal challenge proceeds and would likely miss the policy meeting. If the appeals court denies the stay, the administration could seek emergency relief from the U.S. Supreme Court.
The legal dispute stems from the administration’s accusation that Cook engaged in mortgage fraud by claiming two properties as primary residences in July 2021, before she joined the Fed’s board in 2022. The complaint says that such designations can lead to lower mortgage rates and smaller down payments than if a property is declared a rental or second home. Cook has denied the allegations and has sued to block her firing.
U.S. District Judge Jia Cobb ruled on Tuesday that the administration had not met the legal standard for firing a Fed governor “for cause,” finding that the statutory limit applies only to misconduct while in office. The administration appealed that ruling and sought an emergency reversal from the appeals court, arguing in its brief that the earlier conduct nonetheless calls into question Cook’s trustworthiness to help steer interest-rate policy.
The case unfolds amid a broader push by the White House and its allies to influence Fed personnel. Senate Republicans are advancing Stephen Miran, President Donald Trump’s nominee to an open Fed board seat; a confirmation vote could take place as soon as Monday, according to Republican leaders.
The court fight arrives as the Fed weighs whether to reduce borrowing costs after holding its policy rate steady since late 2024 amid concerns that unpredictable tariff policies could reignite inflation. Federal Reserve Chair Jerome Powell in recent weeks has highlighted weakening job gains, a development most economists say sets the stage for a quarter-point cut next week to about 4.1 percent. When the Fed lowers its benchmark rate, borrowing costs for mortgages, auto loans and business loans typically fall over time.
Should the appeals court rule in Cook’s favor, she would remain on the board for the near term and participate in the upcoming rate decision. If the court sides with the administration, Cook would be removed from the board pending the outcome of further litigation, and the White House could then press for expedited confirmation of its nominee. Either outcome could prompt additional legal filings and potential emergency review by the Supreme Court before the Fed concludes its policy meeting.