Trump move to fire Fed governor Lisa Cook fails — court lets her stay for rate decision

A federal appeals court on Monday (Sep 15) ruled that US central bank governor Lisa Cook could remain in her post, despite President Donald Trump’s attempt to fire her over mortgage fraud allegations. The decision by the US Court of Appeals for the District of Columbia Circuit means Cook will take part in the Federal Reserve's two-day policy meeting starting Tuesday (Sep 16), where officials are set to decide on interest rates.

Trump's aide to Fed confirmed bythe US Senate

On the same day, the Senate narrowly confirmed Trump's nominee Stephen Miran to the Fed’s board of governors in a 48-47 vote. Miran, who chairs the White House Council of Economic Advisers, will join 11 other voting members on the Federal Open Market Committee, which sets rates for the world's largest economy.

Earlier, on 9 September 2025, the US Federal court had blocked Trump's attempt to fire Cook, saying that it was "substantially likely" that the federal governor would succeed in her attempt at a legal recourse.

Why did Trump fire Cook?

The action, as per reports, is based on allegations by a Trump loyalist that the Fed governor had obtained mortgages on two homes while allegedly claiming they were her primary homes. The allegations have not been proved.

Trump, in a letter to Cook, stated that he has "determined that there is sufficient cause" in the allegations against her to fire her. “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” he added in his letter.

However, reports suggest that Cook's ignoring Trump's demands for lower interest rates could be behind the move. As per the Guardian, Cook's removal — a Joe Biden appointment — would allow Trump to bring in a replacement that would essentially give him more control of the federal policy.