A federal appeals court has ruled that President Donald Trump cannot fire Federal Reserve Governor Lisa Cook, as Senate Republicans voted to confirm a senior Trump official to the Board of Governors.
The 2 to 1 ruling means she will be able to participate in the pivotal two-day meeting on 16 September and 17 September to decide on interest rates.
The only judge to vote against the ruling was Trump appointee Gregory Katsas, who said he disagreed with U.S. District Judge Jia Cobb’s findings last week that Cook cannot be removed for actions predating her appointment to the Fed.
“In my view, both holdings are mistaken, and the equitable balance here tips in favour of the government,” Katsas wrote.
“So, I would grant the government’s motion for a stay pending appeal.”
Trump initially moved to fire the Biden appointee in late August, citing allegations of mortgage fraud that were put forward by his housing finance director, Bill Pulte.
This comes as Trump has continually attacked Fed Chairman Jerome Powell for refusing to lower interest rates and considered firing him. He then moved on to target Cook as he tries to remove independence from the Federal Reserve.
At the same time, the Senate voted 48 to 27 to confirm Stephen Miran, who is already chair of Donald Trump’s Council of Economic Advisors, as governor.
Trump appointed Miran to serve out the rest of Adriana Kugler’s term, which expires on January 31, 2026, after she resigned in early August.
Miran’s confirmation marks the first time in the history of the modern Federal Reserve, which stretches almost a century, that a sitting member of the executive branch would also work at the highest levels of the central bank.
The latest Fed decision will be announced on Wednesday.
