Appeals Court Blocks Trump Administration's Attempt to Remove Fed Governor Cook

A federal appeals court has affirmed a lower court's decision to temporarily prevent the Trump administration from removing Lisa Cook from the Federal Reserve's Board of Governors. The court's two-to-one ruling dismissed the administration's urgent request to overturn the initial ruling that had halted the firing.

This decision allows Cook to participate in the central bank's upcoming meeting, where officials will consider whether to lower interest rates. This issue has been a long-standing priority for the Trump administration, leading the former president to criticize the independent financial institution.

The attempt to remove Cook occurred last month, with the administration citing alleged false statements on mortgage agreements. The basis for this claim was a criminal referral from a federal housing official, alleging Cook had declared different properties as her primary residence within a short timeframe.

Cook, appointed by President Biden, has not been charged or convicted of any wrongdoing related to these allegations. She filed a lawsuit, arguing the removal was unlawful and a pretext to replace her with individuals aligned with the former president's agenda. Her complaint stated the mortgage allegations were a means to remove her and allow the former president to fill the seat.

Furthermore, it has been reported that Cook referred to one of the properties as a "vacation home" on a loan estimate, which contradicts the administration's claims. The former president has consistently criticized the Federal Reserve for not lowering interest rates and has sought to influence other independent government economic policy bodies.