Trump administration asks appeals court to let president fire Fed governor Lisa Cook before key meeting [View all]

Source: CBS News

Updated on: September 11, 2025 / 7:16 PM EDT


The Trump administration asked a federal appeals court Thursday to lift a ruling that blocked President Trump from firing Federal Reserve Governor Lisa Cook, in time for a crucial meeting next week when Fed officials will decide whether to lower interest rates. Mr. Trump moved to fire Cook from the Federal Reserve's powerful Board of Governors last month, accusing her of falsely claiming two different homes as her principal residence in mortgage documents.

U.S. District Judge Jia Cobb blocked the firing on Tuesday, concluding that the president "has not stated a legally permissible cause for Cook's removal." Under federal law, Fed board members serve for 14-year terms and can only be removed "for cause." On Thursday, the Trump administration asked the U.S. Court of Appeals for the D.C. Circuit to stay that ruling while the government appeals it. The Justice Department argued that the president has broad discretion to remove federal officials, including to decide whether "cause" exists, and courts have — at most — extremely narrow authority to review those decisions.

"Here, the evidence—which Cook has yet to offer contrary explanation for—was that she applied for two loans for her personal benefit, and was able to obtain favorable interest rates by misrepresenting where she lived," the government argued Thursday. "Regardless of whether that misconduct occurred before or during office, it indisputably calls into question Cook's trustworthiness and whether she can be a responsible steward of the interest rates and economy for the whole Nation."

Those allegations surfaced in a letter from Federal Housing Finance Agency Director Bill Pulte, a Trump appointee who cited mortgage papers for homes that Cook bought in Georgia and Michigan in 2021. Abbe Lowell, an attorney representing Cook, called the government's accusations "unsubstantiated and vague."

Read more: https://www.cbsnews.com/news/trump-court-fire-federal-reserve-lisa-cook-interest-rate-meeting-fomc/