Cook’s argument that she was denied a legitimate process is a court rule that there is a “strong possibility of success.”
Released on September 16, 2025
The US Court of Appeals ruled that Lisa Cook could sit in the Federal Reserve for now.
In a 2-1 ruling issued late Monday, the District of Columbia’s U.S. Court of Appeals found that the Trump administration failed to meet “stricken requirements” to maintain a lower judge’s ruling that the cook should maintain her position while the court considers the basis for her removal.
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The ruling is expected to begin a two-day deliberation on whether the Federal Reserve Setting Commission will lower interest rates.
Members of the Federal Open Market Committee are expected to lower benchmark interest rates by at least a quarter.
Writing for the majority, Circuit Judge Bradley Garcia said Cook’s claim that she was denied a legitimate procedure was likely “very creditable” and had a “strong potential for success.”
“I agree with the district court’s conclusion that Cook’s due process claims are likely to be successful,” Garcia, former President Joe Biden’s appointee, said in the decision.
Garcia said the Trump administration had not challenged Cook, saying that there were no meaningful notices or opportunities to respond to allegations against her.
“The government argues that cooks “do not explain what a hearing would make,” he said.
“Even though she accepts that premise, Cook’s qualifications for the process stand apart from whether she will succeed in securing another outcome.”
Last month, Trump ordered the immediate removal of Cook, one of seven members of the Fed’s board, in an unprecedented move that sparked fears about US central bank independence.
Trump, who has been pressured by the Fed for months to lower interest rates, said he took action considering evidence that Cook made false statements about his mortgage application.
Cook challenged her move in court, claiming that her firing was illegal.
Under the Federal Reserve Act and the U.S. Supreme Court precedent, the president must demonstrate a “cause” that is widely interpreted to mean miscalculation in order to fire a central bank governor.
In the bank’s 111-year history, no president has deleted the Fed governor.
Separately, the US Senate voted 48-47 to confirm Stephen Milan, chairman of Trump’s Economic Advisory Council, with the Fed governor.
Democrats raised concerns about Milan’s independence in light of his refusal to step down from the White House Post and taking leave instead.
