The Trump administration on Thursday asked the Supreme Court to set aside lower court decisions barring President Donald Trump from dismissing Federal Reserve Governor Lisa Cook.
The new request, which was expected, came on the heels of Cook’s participation in the crucial, two-day Federal Open Market Committee (FOMC) rate-setting meeting. For months, Trump has pressed the Federal Reserve to cut rates in order to help spur the nation’s economic growth.
On Monday, the U.S. Court of Appeals blocked Trump from immediately firing Lisa Cook from her role on the Federal Reserve Board of Governors, clearing the way for her to participate in the FOMC meeting.
The outcome of the FOMC meeting impacts every American, with knock-down effects felt in borrowing costs from everything from mortgages to credit cards.
‘The president lawfully removed Lisa Cook for cause,’ White House spokesman Kush Desai said in a statement on Sept. 15. ‘The administration will appeal this decision and looks forward to ultimate victory on the issue.’
The D.C. Appeals Court ruling also came as the Senate narrowly voted 48-47 Monday night to approve Trump’s Fed board nominee, Stephen Miran. He participated in the FOMC meeting alongside Cook.
Trump last month tapped Miran — who currently leads the White House Council of Economic Advisers — to fill the seat vacated by Federal Reserve Governor Adriana Kugler, following her resignation in August. He will finish the remainder of Kugler’s term, which ends on Jan. 31, 2026.
Last week, U.S. District Court Judge Jia Cobb temporarily blocked Cook’s firing, allowing her to continue in her current role for now. She said Trump likely violated Cook’s due process rights and that the Federal Reserve statute does not account for conduct that occurred before a governor took office, like the mortgage fraud alleged against Cook.
The allegations originated with Bill Pulte, a Trump appointee to the federal agency that regulates Fannie Mae and Freddie Mac.
Pulte tied Cook to a trio of properties in Michigan, Georgia, and Massachusetts, which prompted scrutiny over whether Cook had misrepresented how the homes would be used. The three mortgage loans were issued in 2021, before she was nominated by former President Joe Biden to join the Fed board.
Pulte made two separate referrals to the Justice Department over Cook’s mortgage applications.
Trump seized on those allegations and ousted Cook on Aug. 25, which prompted her to sue him in federal court three days later. Her lawsuit named as defendants Trump, the Board of Governors of the Federal Reserve System, and Federal Reserve Chairman Jerome Powell.
The suit, which was filed on Aug. 28, centered on whether Trump satisfied the ‘for cause’ provisions under federal law required to remove a sitting Fed governor, is the first of its kind. Cook’s lawsuit does not address the allegations that she listed multiple houses as a primary residence on mortgage filings.
The Justice Department opened a criminal investigation on Sept. 4 into Cook over allegations of mortgage application fraud. Her lawyer, Abbe Lowell, wrote in a filing on Sept. 2 that she ‘did not ever commit mortgage fraud.’
Cook’s lawyers have also stressed both in court filings and in arguments before Judge Cobb last month the novelty of Trump’s attempt to oust her — a move they argued lacked sufficient cause, and could be used as a dangerous pretext to oust other members of independent federal boards.
