NewsUS President Donald Trump’s administration on Wednesday asked a federal appeals court to remove Federal Reserve Governor Lisa Cook from the central bank’s board by Monday, ahead of next week’s critical interest rate meeting.
In an emergency motion filed late Wednesday, government lawyers urged the appeals court to stay US District Court Judge Jia Cobb’s ruling that reinstated Cook. Judge Cobb found that the administration had not met the “for cause” standard required under the Federal Reserve Act, ruling that allegations about Cook’s 2021 mortgage applications predated her tenure on the board and could not justify her removal.
The administration argued that the district court applied too narrow a definition of “for cause,” explaining that Cook’s alleged conduct “indisputably calls into question her trustworthiness and fitness to serve as a steward of the nation’s economy.”
Cook sued the administration in August, contending the dismissal was unprecedented and illegal. If the appeals court grants the motion by September 15, Cook would be suspended from her duties and miss the Federal Open Market Committee’s two-day policy meeting beginning Tuesday. The Fed is expected to cut its benchmark interest rate by a quarter-point to about 4.1%, though Trump’s allies are pushing for a steeper reduction.
The case underscores escalating tensions between Trump and the Fed, which has kept rates elevated since 2022 to curb inflation. Economists warn that political interference in the board’s composition could threaten the Fed’s independence, a principle long viewed as essential to maintaining market confidence.
Commentators expect the dispute to ultimately reach the Supreme Court, where justices may be asked to define the scope of “for cause” removal protections for independent regulators.