Appeals court blocks Trump’s attempt to remove Fed Governor Lisa Cook

A federal appeals court blocked the Trump administration’s attempt to immediately remove Federal Reserve Governor Lisa D. Cook, keeping her in place while the legal fight over her dismissal continues.

On Monday, the U.S. Court of Appeals for the D.C. Circuit rejected the Trump administration’s emergency request to lift the injunction protecting Lisa D. Cook from removal. The court said the government had not met the high legal standard required to pause the injunction.

In a concurring opinion, Judge Garcia, joined by Judge Childs, wrote that the lower court was right to find Cook likely to win on her due process claim because she was given no notice or chance to respond before being removed. The judge said officials who can only be fired “for cause” have a protected legal interest in their jobs.

In dissent, Judge Katsas argued the government is likely to win, saying misconduct before an appointment can be valid “cause” and that top federal officials do not have the same job protections.

The underlying case stems from President Donald Trump’s decision to remove Cook “effective immediately” for cause, citing allegations she signed conflicting 2023 mortgage documents that each identified a different property as her primary residence.

In a letter, Trump called the conduct “deceitful and potentially criminal” and said it undermined her “competence and trustworthiness as a financial regulator.” The administration has increased pressure on the Federal Reserve to lower interest rates.

CNN reported that mortgage records reviewed by the network show Cook listed both homes as her principal residence, though it is unclear why or whether the filings were intentional.

Cook, appointed to the Fed in 2022, has rejected calls to resign, saying she has “no intention of being bullied to step down” and pledging to provide accurate information about her financial history.