The battle between the White House and the Federal Reserve has entered uncharted waters. President Donald Trump’s administration has filed an appeal after a federal judge halted his move to remove Federal Reserve Governor Lisa Cook, setting up a high-stakes legal fight that could redefine the independence of America’s central bank.
Judge Jia Cobb ruled that Trump’s accusations of mortgage fraud against Cook—linked to her financial dealings before she ever joined the Fed—did not amount to sufficient cause for dismissal. The decision temporarily shields Cook from being forced out just days before the Fed’s critical policy meeting.
The administration wasted little time in pushing back. A brief notice of appeal was filed in the D.C. Circuit Court of Appeals, signaling Trump’s determination to have the power to act before the Fed sets interest rates next week.
The White House insists Cook’s removal was lawful, framing the fraud allegations as “cause” under the law that governs Fed appointments. Cook, however, maintains the claims are baseless and argues the move is nothing more than political payback for her monetary policy positions.
The stakes go well beyond one governor. No U.S. president has ever successfully removed a Federal Reserve Board member. The law allows removal “for cause” but leaves the term undefined—a legal gray zone now under the spotlight. Cobb stressed that the public’s interest in keeping the Fed free from political interference weighed heavily in her decision.
Cook, who has consistently voted with the Fed majority since her confirmation in 2022, is caught in the middle of a broader clash: Trump’s pressure campaign on the central bank to slash rates immediately.
The Justice Department has also launched a separate probe into Cook’s past mortgage filings, with subpoenas issued in Georgia and Michigan. Whether those allegations can legally justify her removal remains the question at the heart of the case—one that could eventually land before the Supreme Court.
For now, Lisa Cook remains on the Board, her future uncertain, as the Fed prepares to chart the course of U.S. monetary policy in one of its most politically charged moments in history.
