President Donald Trump is preparing for a Supreme Court battle to remove Federal Reserve Governor Lisa Cook.
On Monday, the U.S. Court of Appeals for the D.C. Circuit temporarily blocked Trump from firing Cook.
The ruling allows Cook to participate in a pivotal interest rate-setting meeting scheduled to begin Tuesday.
It also sets the stage for the case to go to the high court.
The Trump administration is expected to seek an emergency stay from the Supreme Court.
The ruling comes amid Trump’s push to reshape the Federal Reserve and accelerate rate cuts to bolster economic growth.
The Federal Open Market Committee (FOMC), which sets benchmark interest rates, begins its two-day meeting just hours after the court’s decision.
It remains unclear whether the White House will seek an emergency stay from the Supreme Court to remove Cook before the meeting.
The decision comes on the same day the Senate narrowly approved Trump nominee Stephen Miran to the Fed board in a 48–47 vote.
Miran, who currently serves on the White House Council of Economic Advisers, will also participate in this week’s FOMC meeting.
Trump appointed him to fill the seat vacated by former Fed Governor Adriana Kugler, who resigned in August. Miran’s term runs through January 2026.
Cook’s position, however, remains contested.
Trump removed her from the board on August 25, citing allegations of mortgage fraud tied to three properties in Michigan, Georgia, and Massachusetts.
The loans were issued in 2021, before Cook was nominated to the Fed by then-President Joe Biden.
Bill Pulte, a Trump appointee to the agency overseeing Fannie Mae and Freddie Mac, raised the allegations and referred them to the Justice Department.
Federal investigators launched a probe into the matter on September 4.
Cook, who has denied wrongdoing, sued Trump, the Fed Board of Governors, and Fed Chairman Jerome Powell in federal court just days after her ouster.
Her legal team, led by attorney Abbe Lowell, argues that Trump lacked sufficient legal grounds to remove her under the “for cause” protections afforded to Fed governors.
U.S. District Judge Jia Cobb sided with Cook last week in a preliminary ruling, allowing her to remain in her post while the case proceeds.
Cobb said Trump likely violated Cook’s due process rights and noted that the Federal Reserve statute does not appear to account for conduct predating a governor’s appointment.
The case marks the first legal challenge of its kind to a president’s attempt to fire a sitting member of the Federal Reserve Board, raising broader questions about presidential authority over independent agencies.
Republicans, meanwhile, see Trump’s push as part of his broader effort to break from what he has long described as a “politicized Fed” and steer the central bank toward policies that will support growth, job creation, and lower borrowing costs for American families.
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