President Donald Trump’s legal team appealed a federal judge’s ruling that temporarily blocked his attempt to fire Federal Reserve Board of Governors member Lisa Cook.
U.S. District Judge Jia Cobb’s ruling prevents the Federal Reserve and Trump from removing Cook or getting in her way.
Trump’s team appealed the case on Wednesday to the U.S. Court of Appeals for the District of Columbia.
In a late August social media post, Trump fired Cook, who was appointed by former President Joe Biden. That came after Federal Housing Finance Agency Director William Pulte alleged Cook committed mortgage fraud.
Pulte said Cook owns properties in Georgia and Michigan but had separately listed both as her “primary residence” on different mortgage agreements. A primary residence can mean lower mortgage rates.
Cook sued after Trump posted her dismissal letter to his Truth Social platform. Cook denied wrongdoing and said she could only be fired “for cause.”
Cobb’s ruling on Tuesday sided with Cook.
“The best reading of the ‘for cause’ provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor’s behavior in office and whether they have been faithfully and effectively executing their statutory duties,” the judge wrote. “‘For cause’ thus does not contemplate removing an individual purely for conduct that occurred before they began in office. In addition, the Court finds that the removal also likely violated Cook’s procedural rights under the Fifth Amendment’s Due Process Clause.”
As the court case continues, so does a Justice Department investigation. Last week, the Justice Department issued subpoenas to investigate whether Cook submitted fraudulent information on mortgage applications. The investigation focuses on properties in Ann Arbor, Mich., and Atlanta.
The appeal comes as Trump seeks ways to control the independent central bank. The president continues to pressure the Federal Reserve to lower key interest rates. He criticized Federal Reserve Chair Jerome Powell again on Wednesday morning.
Trump has said the U.S. should have the lowest rates in the world, but the Federal Open Market Committee has taken a wait-and-see approach on rates over concerns about how Trump’s tariffs would affect the economy. More recently, Powell hinted that the Fed may lower interest rates at its next meeting later this month.
Earlier this year, the U.S. Supreme Court indicated it might treat the Federal Reserve differently from other independent agencies. The nation’s highest court said the president and the Federal Reserve’s relationship differed from other independent agencies.
“The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the high court wrote in an emergency ruling in May.
