Court rules against Trump, allowing Fed Governor Lisa Cook to vote on rate cuts

A federal appeals court on Monday evening denied a last-minute attempt by President Trump to block Federal Reserve Governor Lisa Cook from participating in the Federal Open Market Committee (FOMC) meeting this week.

The U.S. Court of Appeals for the District of Columbia Circuit‘s decision upheld federal Judge Jia Cobb’s order last week that blocked Trump from firing Cook, rejecting his emergency request to move forward with the dismissal.

The two-day FOMC meeting will include a vote on cutting the Fed funds rate for the first time this year. Trump has sought to influence that vote by pressuring Fed Chair Jerome Powell and Fed governors. Stephen Miran, Trump’s pick to replace Fed Governor Adriana D. Kugler, who resigned on Aug 1., could cast a key vote following his last-minute confirmation on Monday evening.

Trump and other government officials, including Federal Housing Finance Agency (FHFA) Director Bill Pulte, claim that Cook committed mortgage fraud before her term began at the Fed. Pulte sent two criminal referrals to Attorney General Pam Bondi on Aug. 15, which prompted Trump to attempt to dismiss Cook “for cause” on Aug. 25.

Cook, who has been neither charged with nor convicted of a crime, sued Trump and claimed that her dismissal was unlawful under the Fed’s chartering statute. The Department of Justice opened a probe on Sept. 4 into whether Cook misrepresented the occupancy of three properties to obtain better mortgage terms.

A 2021 loan estimate reviewed by Reuters on Sept. 12, however, shows Cook declared her Atlanta condo as a vacation home, seemingly undermining Trump and Pulte’s allegations.

“The Department of Justice does not comment on current or prospective litigation, including matters that may be an investigation,” a spokesperson told HousingWire.

Cook and the White House did not return HousingWire’s requests for comment at the time of publication. The Federal Reserve board declined to comment, but a spokesperson said it would “abide by the court’s decision.”