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6d ago

Trump Seeks Emergency Stay to Remove Fed Governor Lisa Cook Before Rate Meeting

A judge’s injunction keeping her on the board found that “for cause” likely applies only to misconduct in office.

FILE - Federal Reserve Chairman Jerome Powell, left, talks with Board of Governors member Lisa Cook, right, during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
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FILE - Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
FILE - Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)

Overview

  • Justice Department asked the D.C. Circuit to pause Judge Jia Cobb’s order by Monday so the ouster can take effect before the Fed’s Sept. 16–17 policy meeting.
  • Judge Cobb’s preliminary injunction said Trump’s stated grounds tied to alleged pre‑appointment mortgage filings likely do not meet the Federal Reserve Act’s removal standard and likely violated due‑process rights.
  • Cook remains on the seven‑member board while her lawsuit proceeds, and the Fed has said it will follow the courts as officials prepare for a widely expected rate cut next week.
  • DOJ has opened a criminal mortgage‑fraud probe and, according to filings and reports, issued grand‑jury subpoenas in Georgia and Michigan; Cook denies wrongdoing.
  • The administration argues the president can determine cause based on trustworthiness, while Cook’s lawyers call the move a pretext with implications for Fed independence and possible Supreme Court review.