"On a two-to-one vote, the divided court upheld an earlier decision from a district judge who found that firing Lisa Cook would likely violate the Federal Reserve Act, which includes provisions designed to insulate the central bank from political pressure from the White House. The decision comes just days before the Fed's rate-setting committee is expected to vote to lower its benchmark interest rate for the first time this year."
"Trump has been waging a high-pressure campaign to get the Fed to cut rates more aggressively. The president announced his decision to fire Cook in a social media post last month. He pointed to allegations from a political ally, Bill Pulte, who accused Cook of making false statements on a mortgage application in 2021. Pulte, who oversees mortgage giants Fannie Mae and Freddie Mac, has leveled similar charges against others seen as hostile to Trump,"
A federal appeals court blocked President Trump from removing Federal Reserve Governor Lisa Cook, upholding a district judge's finding that the removal would likely violate the Federal Reserve Act. The two-to-one ruling referenced statutory protections meant to shield the central bank from White House political pressure. The ruling arrived days before the Fed's rate-setting committee was expected to vote to lower its benchmark interest rate. The president cited allegations from Bill Pulte about a 2021 mortgage application when announcing the firing on social media. Cook and others accused denied wrongdoing. Cook's attorneys argued the unproven, pre-Fed allegations do not meet the legal "for cause" removal standard and warned that excluding Cook from the meeting could affect domestic and foreign markets. Removing Cook would have allowed a fourth Trump appointee on the seven-member Fed board; White House economist Stephen Miran was narrowly confirmed to fill a short-term vacancy.
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