A federal appeals court today declined to allow President Trump to remove Federal Reserve Governor Lisa Cook from the Fed board.
Trump last month announced he was removing Cook after Federal Housing Finance Agency Director William Pulte alleged that she made false statements on mortgage agreements. Cook filed a lawsuit against the administration in U.S. District Court for D.C., arguing that federal law allows the president to remove Fed governors only “for cause,” and that the claims made against her have not been investigated or proven.
The district court last week granted a temporary restraining order preventing Cook’s removal while it considers the case. The Trump administration appealed the decision, seeking a quick ruling as the Federal Open Market Committee meets Tuesday and Wednesday to set monetary policy. In a 2-1 decision, the appeals court said that given the unique circumstances of the case, and Cook’s “strong likelihood” of success on her claim that she was denied due process, it would not overturn the lower court decision.
The administration is likely to appeal the decision to the U.S. Supreme Court, according to news reports.
