Trump’s Request to Fire Lisa Cook Denied Ahead of Fed’s FOMC Meeting

In a significant victory for Fed Governor Lisa Cook, the US Court of Appeals for the DC Circuit has denied President Donald Trump's request to oust her from her position, allowing her to participate in the upcoming interest rate decision. The court's decision marks a major setback for Trump's efforts to assert control over the Federal Reserve, highlighting the importance of the central bank's independence.

Lisa Cook Gets Court Support

According to the latest report , the US appeals court has declined to allow Trump to fire Fed Governor Lisa Cook. This provides an opportunity for her to participate in the upcoming interest rate decision by the Federal Reserve. If Trump needs to block her from attending the FOMC meeting on Tuesday and Wednesday, the administration has only a few hours to appeal to the Supreme Court.

On September 9, Judge Jia Cobb ruled that Trump's allegations of mortgage fraud against Fed Governor Lisa Cook weren't enough to justify her removal. Subsequently, Trump’s attorneys asked the appeals court to put on hold the judge’s ruling that blocked the president from firing Federal Reserve’s Lisa Cook while her lawsuit continues.

However, the judge ruled that Trump's team didn't meet the requirements for a stay. This allows her to remain in her position for now, particularly ahead of the central bank’s crucial policy meeting. The judge said, “Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her.”

Allegations Against Fed Official

As earlier reported by CoinGabbar, Federal Housing Finance Agency (FHFA) Director William Pulte accused the Fed Governor of potentially committing mortgage fraud by listing two properties, a Michigan home and an Atlanta condominium, as her primary residences on loan applications. This allegation has led Trump to call for her resignation.

These allegations and the tensions escalated further when Pulte filed a second lawsuit claiming the central bank official misrepresented information about a third property. This sparked concerns over her mortgage disclosures to the US government.

Trump Nominee for the Fed

In a parallel development, the US Senate confirmed Stephen Miran as a Federal Reserve governor with a vote of 48-47, despite concerns from Democrats about his independence. Miran, who currently chairs the White House Council of Economic Advisers, will serve on the Fed's board of governors, giving President Trump another appointment to shape monetary policy.

The newly appointed governor will also participate in the upcoming FOMO meeting where the central bank is expected to reduce interest rates by a 25-basis point.